TSM vs WDC: Which Is the Better Buy?
Side-by-side comparison of Taiwan Semiconductor Manufacturing Company Limited and Western Digital Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C
High Quality
VS
Western Digital Corporation · Technology
$519.17
-28.7% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
TSM has more upside to fair value
(+45.0%).
WDC trades at a lower forward P/E
(27.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
TSM |
WDC |
| Current Price |
$409.74 |
$519.17 |
| Fair Value Estimate |
$594.12 |
$370.00 |
| Upside to Fair Value |
+45.0%
|
-28.7%
|
| Market Cap |
$2,125.1B |
$178.9B |
| Forward P/E |
38.8x
|
27.8x
|
| EV / EBITDA |
17.6x
|
37.3x
|
| Price / Sales |
14.5x
|
13.9x
|
| Price / FCF |
58.4x
|
51.0x
|
| Revenue Growth YoY |
+36.0%
|
+35.7%
|
| Gross Margin |
61.9%
|
48.9%
|
| Operating Margin |
53.2%
|
34.9%
|
| Return on Equity |
36.9%
|
43.4%
|
| Dividend Yield |
0% |
0.1% |
| FCF Yield |
1.71%
|
2.0%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Western Digital is now a pure-play, duopoly hard-disk-drive manufacturer, having spun off its NAND flash business as SanDisk in February 2025 and sold its remaining SanDisk stake for $3.1 billion in February 2026. It is riding the same AI-storage supercycle as SanDisk and Micron, but from the mass-capacity nearline HDD side: hyperscalers are buying every high-capacity drive WDC can make for AI da…
Accumulation Zones
| Metric |
TSM |
WDC |
| Zone Low |
$445.59 |
$278.00 |
| Zone High |
$505.00 |
$315.00 |
| In Buy Zone? |
Yes
|
No
|