TSM vs XOM: Which Is the Better Buy?
Side-by-side comparison of Taiwan Semiconductor Manufacturing Company Limited and Exxon Mobil Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
VS
Exxon Mobil Corporation · Energy
$152.30
-33.0% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
TSM has more upside to fair value
(-3.8%).
XOM trades at a lower forward P/E
(17.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
TSM |
XOM |
| Current Price |
$365.90 |
$152.30 |
| Fair Value Estimate |
$352.00 |
$102.00 |
| Upside to Fair Value |
-3.8%
|
-33.0%
|
| Market Cap |
$1,897.7B |
$634.6B |
| Forward P/E |
26.0x
|
17.5x
|
| EV / EBITDA |
18.1x
|
9.8x
|
| Price / Sales |
13.3x
|
2.0x
|
| Price / FCF |
54.0x
|
26.9x
|
| Revenue Growth YoY |
+33.0%
|
-4.5%
|
| Gross Margin |
59.9%
|
21.7%
|
| Operating Margin |
50.8%
|
10.5%
|
| Return on Equity |
35.1%
|
11.1%
|
| Dividend Yield |
1.05% |
2.65% |
| FCF Yield |
1.85%
|
3.72%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Exxon Mobil is a world-class integrated energy supermajor with unmatched Permian Basin scale following the Pioneer Natural Resources acquisition, a high-margin Guyana growth engine, and disciplined capital allocation. However, the stock remains significantly overvalued relative to its own 5-year history on every key metric. At $152, XOM trades at roughly 22x trailing earnings, 1.96x sales, and 27…
Accumulation Zones
| Metric |
TSM |
XOM |
| Zone Low |
$265.00 |
$77.00 |
| Zone High |
$310.00 |
$92.00 |
| In Buy Zone? |
No
|
No
|