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STOCK COMPARISON

Nvidia vs Taiwan Semiconductor Manufacturing: Fair Value & Quality

Both stocks run through our valuation models. Here is how Nvidia (NVDA) and Taiwan Semiconductor Manufacturing (TSM) compare, as of Sep 25, 2026.

As of Sep 25, 2026, Fair Value Calculator sees Taiwan Semiconductor Manufacturing as the more attractively valued of the two: Nvidia trades at $225 versus a fair value of $199 (-12%), while Taiwan Semiconductor Manufacturing trades at $451 versus $497 (+10%).
Nvidia
NVDA · USD · Information Technology
-12%
upside to fair value
overvalued
Price$225
Fair Value$199
Quality74/100
Taiwan Semiconductor Manufacturing
TSM · USD · Information Technology
+10%
upside to fair value
undervalued
Price$451
Fair Value$497
Quality78/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

NvidiaTaiwan Semiconductor Manufacturing
Valuation
34.5×P/E (TTM)39.2×
21.81×P/S (TTM)16.57×
35.15×P/B13.74×
33.4×EV/EBITDA22.6×
0.65×PEG1.01×
−11.6%Fair value upside+10.2%
0.0%Dividend yield0.8%
$0.28Dividend per share$3.71
Profitability
66%Operating margin60%
2.22×EBIT margin trend (5Y)1.20×
114%Return on equity40%
53%Return on assets19%
Growth
85%Revenue growth (YoY)36%
100.0%Avg. growth/yr (3Y)19.3%
66.9%Avg. growth/yr (5Y)23.5%
+96.9%Value creation/yr+25.9%
Balance & size
503.4×Interest coverage (EBIT/interest)158.1×
0.05×Debt / equity0.17×
$5.5TMarket cap$2.3T
healthyGrowth qualityexpensive

Nvidia leads: 11 to 5 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Nvidiaof which business quality 74 · market factors 55 Taiwan Semiconductor Manufacturingof which business quality 74 · market factors 70
ProfitabilityMargins and returns on capital today
96
76
Quality GrowthAre margins and returns improving?
34
88
CashflowEarnings quality: real cash, not paper profit
81
69
Fin. StrengthBalance sheet, leverage, solvency risk
83
98
InvestmentDisciplined investing over empire-building
32
5
Low VolatilityCalm price path (market factor)
25
43
MomentumPrice trend over the last 3–12 months (market factor)
65
74
52W MomentumDistance to the 52-week high (market factor)
74
94
Net IssuanceShare count: buybacks or dilution?
91
82

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyNvidiaPrice $225Taiwan Semiconductor ManufacturingPrice $451
DCF Models-30%below the price$158+2015%above the price$9,541
Earnings-Based-34%below the price$148+1188%above the price$5,813
Dividend Discount-100%below the price$0.77+285%above the price$1,737
Multiples-67%below the price$74.31+1569%above the price$7,530
Asset-Based-98%below the price$4.36+53%above the price$692
Growth DCF-52%below the price$108+1353%above the price$6,557
Economic Profit-53%below the price$106+896%above the price$4,495
Growth Earnings-9%close to the price$205+2024%above the price$9,584
Minimum-100%below the price$0.77+53%above the price$692
Maximum-9%close to the price$205+2024%above the price$9,584
Median-52%below the price$107+1271%above the price$6,185
Geometric mean-80%below the price$43.85+876%above the price$4,405

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Nvidia: 23 of 26 models see the stock below the current price.

Taiwan Semiconductor Manufacturing: 0 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Nvidia
Price $225
Fair Value $199
Bear $130Bull $469
Taiwan Semiconductor Manufacturing
Price $451
Fair Value $497
Bear $270Bull $661

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Nvidia · Information Technology

Quality score74 · Top 25%
Fair value upside-12% · above median

Taiwan Semiconductor Manufacturing · Information Technology

Quality score78 · Top 25%
Fair value upside+10% · above median

Bottom line

As of Sep 25, 2026, Fair Value Calculator sees Taiwan Semiconductor Manufacturing as the more attractively valued of the two: Nvidia trades at $225 versus a fair value of $199 (-12%), while Taiwan Semiconductor Manufacturing trades at $451 versus $497 (+10%).

Taiwan Semiconductor Manufacturing has the higher quality score (78/100).

Open Taiwan Semiconductor Manufacturing live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.