Comprehensive Stock Comparison
Compare Taiwan Semiconductor Manufacturing Company Limited (TSM) vs GLOBALFOUNDRIES Inc. (GFS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TSM | 33.0% revenue growth vs GFS's 0.6% |
| Value | TSM | Lower P/E (0.8x vs 25.8x) |
| Quality / Margins | TSM | 45.1% net margin vs GFS's 13.0% |
| Stability / Safety | TSM | Beta 1.44 vs GFS's 1.60 |
| Dividends | TSM | 0.8% yield; 5-year raise streak; GFS pays no meaningful dividend |
| Momentum (1Y) | TSM | +108.8% vs GFS's +22.6% |
| Efficiency (ROA) | TSM | 21.8% ROA vs GFS's 5.2%, ROIC 42.7% vs 5.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Taiwan Semiconductor Manufacturing Company is the world's largest dedicated semiconductor foundry, manufacturing advanced chips for technology companies that design but don't produce their own silicon. It generates revenue primarily from wafer fabrication services — with high-performance computing and smartphone chips driving over 80% of sales — supplemented by packaging, testing, and mask-making services. Its competitive moat stems from unmatched manufacturing scale, technological leadership in advanced process nodes, and deep customer relationships that create switching costs for chip designers.
GLOBALFOUNDRIES is a semiconductor foundry that manufactures integrated circuits for other companies rather than designing its own chips. It generates revenue primarily from wafer fabrication services — including specialty technologies for automotive, IoT, and communications applications — with contract manufacturing fees from customers like AMD, Qualcomm, and Broadcom. Its competitive advantage lies in being one of the few pure-play foundries with advanced specialty process technologies, particularly in RF, analog, and power semiconductors where it avoids direct competition with TSMC and Samsung in leading-edge nodes.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TSM leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). GFS leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
TSM is the larger business by revenue, generating $3.82T annually — 562.4x GFS's $6.8B. TSM is the more profitable business, keeping 45.1% of every revenue dollar as net income compared to GFS's 13.0%. On growth, TSM holds the edge at +21.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TSMTaiwan Semiconduc… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| RevenueTrailing 12 months | $3.82T | $6.8B |
| EBITDAEarnings before interest/tax | $2.79T | $2.1B |
| Net IncomeAfter-tax profit | $1.72T | $885M |
| Free Cash FlowCash after capex | $1.02T | $1.0B |
| Gross MarginGross profit ÷ Revenue | +59.9% | +25.2% |
| Operating MarginEBIT ÷ Revenue | +50.8% | +11.7% |
| Net MarginNet income ÷ Revenue | +45.1% | +13.0% |
| FCF MarginFCF ÷ Revenue | +26.7% | +14.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +21.6% | 0.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +42.0% | +127.3% |
Valuation Metrics
At 29.9x trailing earnings, GFS trades at a 15% valuation discount to TSM's 35.1x P/E. On an enterprise value basis, GFS's 12.4x EV/EBITDA is more attractive than TSM's 22.3x.
| Metric | TSMTaiwan Semiconduc… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| Market CapShares × price | $1.94T | $26.4B |
| Enterprise ValueMkt cap + debt − cash | $1.89T | $26.3B |
| Trailing P/EPrice ÷ TTM EPS | 35.15x | 29.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.84x | 25.83x |
| PEG RatioP/E ÷ EPS growth rate | 1.27x | — |
| EV / EBITDAEnterprise value multiple | 22.35x | 12.44x |
| Price / SalesMarket cap ÷ Revenue | 15.85x | 3.89x |
| Price / BookPrice ÷ Book value/share | 11.20x | 2.21x |
| Price / FCFMarket cap ÷ FCF | 55.58x | 26.19x |
Profitability & Efficiency
TSM delivers a 31.6% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $7 for GFS. GFS carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to TSM's 0.18x. On the Piotroski fundamental quality scale (0–9), TSM scores 8/9 vs GFS's 7/9, reflecting strong financial health.
| Metric | TSMTaiwan Semiconduc… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| ROE (TTM)Return on equity | +31.6% | +7.4% |
| ROA (TTM)Return on assets | +21.8% | +5.2% |
| ROICReturn on invested capital | +42.7% | +5.3% |
| ROCEReturn on capital employed | +33.0% | +5.6% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 0.18x | 0.14x |
| Net DebtTotal debt minus cash | -$1.77T | -$171M |
| Cash & Equiv.Liquid assets | $2.76T | $1.8B |
| Total DebtShort + long-term debt | $990.4B | $1.6B |
| Interest CoverageEBIT ÷ Interest expense | 315.91x | — |
Total Returns (with DRIP)
A $10,000 investment in TSM five years ago would be worth $29,677 today (with dividends reinvested), compared to $10,248 for GFS. Over the past 12 months, TSM leads with a +108.8% total return vs GFS's +22.6%. The 3-year compound annual growth rate (CAGR) favors TSM at 63.5% vs GFS's -10.1% — a key indicator of consistent wealth creation.
| Metric | TSMTaiwan Semiconduc… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| YTD ReturnYear-to-date | +17.2% | +29.0% |
| 1-Year ReturnPast 12 months | +108.8% | +22.6% |
| 3-Year ReturnCumulative with dividends | +336.8% | -27.2% |
| 5-Year ReturnCumulative with dividends | +196.8% | +2.5% |
| 10-Year ReturnCumulative with dividends | +1552.1% | +2.5% |
| CAGR (3Y)Annualised 3-year return | +63.5% | -10.1% |
Risk & Volatility
TSM is the less volatile stock with a 1.44 beta — it tends to amplify market swings less than GFS's 1.60 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | TSMTaiwan Semiconduc… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.44x | 1.60x |
| 52-Week HighHighest price in past year | $390.20 | $50.98 |
| 52-Week LowLowest price in past year | $134.25 | $29.77 |
| % of 52W HighCurrent price vs 52-week peak | +96.0% | +93.3% |
| RSI (14)Momentum oscillator 0–100 | 62.8 | 56.2 |
| Avg Volume (50D)Average daily shares traded | 11.1M | 3.3M |
Analyst Outlook
Wall Street rates TSM as "Buy" and GFS as "Buy". Consensus price targets imply 8.9% upside for TSM (target: $408) vs 7.5% for GFS (target: $51). TSM is the only dividend payer here at 0.77% yield — a key consideration for income-focused portfolios.
| Metric | TSMTaiwan Semiconduc… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $408.00 | $51.14 |
| # AnalystsCovering analysts | 23 | 19 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | — |
| Dividend StreakConsecutive years of raises | 5 | — |
| Dividend / ShareAnnual DPS | $90.94 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Nov 21 | Feb 26 | Change |
|---|---|---|---|
| Taiwan Semiconducto… (TSM) | 100 | 299.12 | +199.1% |
| GLOBALFOUNDRIES Inc. (GFS) | 116.1 | 90.91 | -21.7% |
Taiwan Semiconducto… (TSM) returned +197% over 5 years vs GLOBALFOUNDRIES Inc. (GFS)'s +2%. A $10,000 investment in TSM 5 years ago would be worth $29,677 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Taiwan Semiconducto… (TSM) | $947.9B | $3.8T | +306.0% |
| GLOBALFOUNDRIES Inc. (GFS) | $5.8B | $6.8B | +16.8% |
Taiwan Semiconductor Manufacturing Company Limited's revenue grew from $947.9B (2016) to $3.8T (2025) — a 16.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Taiwan Semiconducto… (TSM) | 35.0% | 45.1% | +28.9% |
| GLOBALFOUNDRIES Inc. (GFS) | -23.6% | 13.0% | +155.2% |
Taiwan Semiconductor Manufacturing Company Limited's net margin went from 35% (2016) to 45% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Taiwan Semiconducto… (TSM) | 0.6 | 0.9 | +50.0% |
| GLOBALFOUNDRIES Inc. (GFS) | 20.6 | 22 | +6.8% |
Taiwan Semiconductor Manufacturing Company Limited has traded in a 0x–1x P/E range over 9 years; current trailing P/E is ~35x. GLOBALFOUNDRIES Inc. has traded in a 21x–33x P/E range over 3 years; current trailing P/E is ~30x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Taiwan Semiconducto… (TSM) | 63.95 | 334.65 | +423.3% |
| GLOBALFOUNDRIES Inc. (GFS) | -2.66 | 1.59 | +159.8% |
Taiwan Semiconductor Manufacturing Company Limited's EPS grew from $63.95 (2016) to $334.65 (2025) — a 20% CAGR.
Chart 6Free Cash Flow — 5 Years
Taiwan Semiconductor Manufacturing Company Limited generated $1.1T FCF in 2025 (+318% vs 2021). GLOBALFOUNDRIES Inc. generated $1B FCF in 2025 (-6% vs 2021).
TSM vs GFS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TSM or GFS a better buy right now?
GLOBALFOUNDRIES Inc. (GFS) offers the better valuation at 29.9x trailing P/E (25.8x forward), making it the more compelling value choice. Analysts rate Taiwan Semiconductor Manufacturing Company Limited (TSM) a "Buy" — based on 23 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TSM or GFS?
On trailing P/E, GLOBALFOUNDRIES Inc. (GFS) is the cheapest at 29.9x versus Taiwan Semiconductor Manufacturing Company Limited at 35.1x. On forward P/E, Taiwan Semiconductor Manufacturing Company Limited is actually cheaper at 0.8x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — TSM or GFS?
Over the past 5 years, Taiwan Semiconductor Manufacturing Company Limited (TSM) delivered a total return of +196.8%, compared to +2.5% for GLOBALFOUNDRIES Inc. (GFS). A $10,000 investment in TSM five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TSM returned +1552% versus GFS's +2.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TSM or GFS?
By beta (market sensitivity over 5 years), Taiwan Semiconductor Manufacturing Company Limited (TSM) is the lower-risk stock at 1.44β versus GLOBALFOUNDRIES Inc.'s 1.60β — meaning GFS is approximately 11% more volatile than TSM relative to the S&P 500. On balance sheet safety, GLOBALFOUNDRIES Inc. (GFS) carries a lower debt/equity ratio of 14% versus 18% for Taiwan Semiconductor Manufacturing Company Limited — giving it more financial flexibility in a downturn.
05Which has better profit margins — TSM or GFS?
Taiwan Semiconductor Manufacturing Company Limited (TSM) is the more profitable company, earning 45.1% net margin versus 13.0% for GLOBALFOUNDRIES Inc. — meaning it keeps 45.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TSM leads at 50.8% versus 11.7% for GFS. At the gross margin level — before operating expenses — TSM leads at 59.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is TSM or GFS more undervalued right now?
On forward earnings alone, Taiwan Semiconductor Manufacturing Company Limited (TSM) trades at 0.8x forward P/E versus 25.8x for GLOBALFOUNDRIES Inc. — 25.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSM: 8.9% to $408.00.
07Which pays a better dividend — TSM or GFS?
In this comparison, TSM (0.8% yield) pays a dividend. GFS does not pay a meaningful dividend and should not be held primarily for income.
08Is TSM or GFS better for a retirement portfolio?
For long-horizon retirement investors, Taiwan Semiconductor Manufacturing Company Limited (TSM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.8% yield, +1552% 10Y return). GLOBALFOUNDRIES Inc. (GFS) carries a higher beta of 1.60 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TSM: +1552%, GFS: +2.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between TSM and GFS?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. TSM pays a dividend while GFS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.