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STOCK COMPARISON

Taiwan Semiconductor Manufacturing vs Nvidia: Fair Value & Quality

Both stocks run through our valuation models. Here is how Taiwan Semiconductor Manufacturing (TSM) and Nvidia (NVDA) compare, as of Aug 8, 2026.

As of Aug 8, 2026, Fair Value Calculator sees Taiwan Semiconductor Manufacturing as the less overvalued of the two: Taiwan Semiconductor Manufacturing trades at $418 versus a fair value of $207 (-50%), while Nvidia trades at $219 versus $96.91 (-56%).
Taiwan Semiconductor Manufacturing
TSM · USD · Information Technology
-50%
upside to fair value
overvalued
Price$418
Fair Value$207
Quality79/100
Nvidia
NVDA · USD · Information Technology
-56%
upside to fair value
overvalued
Price$219
Fair Value$96.91
Quality68/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Taiwan Semiconductor ManufacturingNvidia
Valuation
36.5×P/E (TTM)32.3×
17.28×P/S (TTM)20.16×
13.24×P/B32.48×
24.2×EV/EBITDA30.9×
1.32×PEG0.65×
0.9%Dividend yield0.0%
$24.00Dividend per share$0.04
Profitability
47%Net margin63%
58%Operating margin66%
36%Return on equity114%
17%Return on assets53%
Growth
35%Revenue growth (YoY)85%
19.3%Avg. growth/yr (3Y)100.0%
23.5%Avg. growth/yr (5Y)66.9%
Balance & size
0.17×Debt / equity0.05×
$2.2TMarket cap$5.1T
expensiveGrowth qualityhealthy

Nvidia leads: 4 to 10 metric wins.

Dash = 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.

Taiwan Semiconductor Manufacturingof which business quality 74 · market factors 70 Nvidiaof which business quality 74 · market factors 52
ProfitabilityMargins and returns on capital today
76
96
Quality GrowthAre margins and returns improving?
88
34
CashflowEarnings quality: real cash, not paper profit
69
81
Fin. StrengthBalance sheet, leverage, solvency risk
98
83
InvestmentDisciplined investing over empire-building
5
32
Low VolatilityCalm price path (market factor)
43
26
MomentumPrice trend over the last 3–12 months (market factor)
75
59
52W MomentumDistance to the 52-week high (market factor)
94
68
Net IssuanceBuybacks instead of dilution
82
91

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Taiwan Semiconductor Manufacturing

DCF Models$257
Earnings-Based$180
Dividend Discount$53.85
Multiples$152
Asset-Based$21.45
Growth DCF$169
Economic Profit$139
Growth Earnings$252

25 of 26 models see the stock below the current price.

Nvidia

DCF Models$128
Earnings-Based$148
Dividend Discount$0.77
Multiples$47.03
Asset-Based$4.35
Growth DCF$92.69
Economic Profit$106
Growth Earnings$179

25 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Taiwan Semiconductor Manufacturing
Bear $132Fair Value $207Bull $328
$418 = current price (white tick)
Nvidia
Bear $53.60Fair Value $96.91Bull $178
$219 = current price (white tick)

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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.

Taiwan Semiconductor Manufacturing · Information Technology

Quality score79 · Top 25%
Fair value upside-50% · below median

Nvidia · Information Technology

Quality score68 · Top 25%
Fair value upside-56% · below median

Bottom line

As of Aug 8, 2026, Fair Value Calculator sees Taiwan Semiconductor Manufacturing as the less overvalued of the two: Taiwan Semiconductor Manufacturing trades at $418 versus a fair value of $207 (-50%), while Nvidia trades at $219 versus $96.91 (-56%).

Taiwan Semiconductor Manufacturing has the higher quality score (79/100).

See the full analysis →
Taiwan Semiconductor Manufacturing · Nvidia

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.