NVIDIA Corporation vs Taiwan Semiconductor Manufacturing Company Limited
NVDA wins the Tale of the Tape 6–3.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Moderately correlated — some diversification benefit from holding both.
Fundamentals
| Metric | NVDA | TSM |
|---|---|---|
| Market Cap | $5.11T | $2.17T |
| P/E Ratio | 32.4x | 35.9x |
| Forward P/E | 16.7x | 21.4x |
| P/B | 32.62x | 64.01x |
| Dividend Yield | 0.47% | 0.91% |
| Beta | 2.24 | 1.26 |
Quantitative Metrics
| Metric | NVDA | TSM |
|---|---|---|
| DCF Fair Value | $56.04 | $1470.88 |
| DCF Upside | -70.4% | +298.0% |
| Piotroski F | 4/9 | 9/9 |
| Altman Z | 60.40 | 3.06 |
| Beneish M | -1.14 | -2.68 |
| FCF Yield | 2.11% | 1971.97% |
| Net Debt/EBITDA | -0.0x | -0.7x |
| ROIC | 64.1% | 25.1% |
| WACC | 19.0% | 9.8% |
| ROIC – WACC | 45.1pp | 15.3pp |
| Gross Margin | 71.1% | 59.9% |
| Net Margin | 55.6% | 45.1% |
| Rev Growth YoY | 65.5% | 31.6% |
| Sharpe (1Y) | 1.48 | 2.49 |
| Max Drawdown 3Y | -36.9% | -36.8% |
| FCF Payout Ratio | 1% | 47% |
NVDA Price
TSM Price
ETF Exposure
NVDA found in:
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
NVDA vs TSM: Head-to-Head Analysis
NVIDIA Corporation (NVDA) and Taiwan Semiconductor Manufacturing Company Limited (TSM) represent two companies in the Technology sector. In our quantitative Tale of the Tape scoring, NVDA leads 6–3 across nine fundamental and risk metrics including profitability, valuation, capital efficiency, and financial health.
In terms of capital efficiency, NVDA generates a return on invested capital (ROIC) of 64.1% compared to TSM's 25.1%. This suggests NVDA is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between NVDA and TSM is 0.664, indicating moderate co-movement, with some diversification value from holding both in a portfolio context.
NVDA appears in 52 ETFs tracked by SecuritiesDB, while TSM appears in 6 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, NVDA or TSM?
Our quantitative analysis compares NVDA and TSM across nine fundamental dimensions. NVDA wins the Tale of the Tape 6–3. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are NVDA and TSM correlated?
The 252-day correlation between NVDA and TSM is 0.664. They show moderate correlation — partially diversifying.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.