How this ASML vs TSM comparison is calculated

All metrics are based on trailing twelve months (TTM) financial data, consensus analyst estimates, and standardized valuation ratios. Data is sourced from Financial Modeling Prep and SEC EDGAR. Figures are normalized to ensure a fair comparison between ASML Holding N.V. and Taiwan Semiconductor Manufacturing Company Limited. Analyst price targets and ratings are aggregated from Wall Street consensus as of 2026-05-19.

Quick verdict: ASML Holding N.V. vs Taiwan Semiconductor Manufacturing Company Limited in 2026

Taiwan Semiconductor Manufacturing Company Limited (TSM) emerges as the clear leader in revenue growth, exhibiting a more robust expansion in its topline. In terms of valuation metrics, Taiwan Semiconductor Manufacturing Company Limited maintains an edge, offering a more attractive fundamental discount compared to ASML. For profitability and operational efficiency, TSM also leads, showcasing superior margins, while ASML Holding N.V. presents a significantly higher potential upside according to current analyst price targets. Not investment advice.

ASML Holding N.V. vs Taiwan Semiconductor Manufacturing Company Limited: key metrics side by side

A full side-by-side look at ASML Holding N.V. (ASML) and Taiwan Semiconductor Manufacturing Company Limited (TSM) across earnings multiples, profitability, revenue momentum, and analyst sentiment — data updated 2026-05-19.

Relative valuation: ASML vs TSM

Examining the current earnings multiples for these semiconductor giants, ASML Holding N.V. trades at a Price/Earnings ratio of 48.28x, which is considerably higher than Taiwan Semiconductor Manufacturing Company Limited, which stands at 29.64x. This significant price-to-earnings gap suggests that investors are currently assigning a premium to ASML’s future growth prospects or its unique position in the lithography equipment market. Furthermore, the price-to-book multiple for ASML stock is 23.2x, substantially above TSM’s 9.71x, indicating that Taiwan Semiconductor Manufacturing Company Limited offers a much more attractive relative valuation from an asset perspective.

When considering intrinsic value, both companies appear to be trading at a premium to their discounted cash flow (DCF) estimates. ASML exhibits a calculated DCF of $350.87, implying a notable -76.2% discount from its current share price. Meanwhile, TSM’s DCF estimate is $153.06, indicating a -61.3% divergence from its present market price. Based on current consensus data, Taiwan Semiconductor Manufacturing Company Limited presents a less severe overvaluation according to this intrinsic value model, signaling a more appealing entry point for value-conscious investors. Overall, the earnings multiple and book value metrics unequivocally point to TSM as carrying a more attractive valuation in today’s market.

Revenue momentum: ASML Holding N.V. vs Taiwan Semiconductor Manufacturing Company Limited

In terms of topline expansion, Taiwan Semiconductor Manufacturing Company Limited demonstrates a significantly more robust growth trajectory with a year-over-year revenue increase of +33.0%. This figure comfortably outpaces ASML Holding N.V., which reported a solid, yet comparatively lower, revenue growth rate of +15.6%. This divergence in revenue momentum highlights TSM’s commanding market position as the world’s largest dedicated independent semiconductor foundry, benefiting from broad demand across multiple end markets including HPC, smartphones, IoT, and automotive.

Beyond just revenue, the operational efficiency, as indicated by EBITDA margins, also shows a pronounced difference. ASML Holding N.V. achieved an EBITDA margin of 37.99%, reflecting healthy profitability in its specialized equipment manufacturing. However, Taiwan Semiconductor Manufacturing Company Limited showcased a far superior EBITDA margin of 71.17%, underscoring its exceptional operational leverage and cost control in high-volume chip production. This gap in performance may not persist indefinitely, as market conditions and technological shifts can impact future growth rates and profitability for both companies, but currently, TSM shows a stronger growth trajectory across key financial indicators.

Profitability and cash generation: ASML vs TSM

When assessing the overall profitability, Taiwan Semiconductor Manufacturing Company Limited stands out with a net margin of 47.0%, indicating that nearly half of its revenue is converted into profit after all expenses. This superior financial efficiency significantly surpasses ASML Holding N.V., which posted a healthy but lower net margin of 29.71%. This suggests that TSM excels in translating its substantial revenue into bottom-line earnings, reflecting its operational scale and cost advantages in the foundry business.

Regarding cash generation, the free cash flow (FCF) yield offers another perspective on a company’s ability to produce cash relative to its share price. ASML records a FCF yield of 1.85%, slightly above Taiwan Semiconductor Manufacturing Company Limited’s 1.78%. While the return on equity (ROE) for both ASML Holding N.V. and TSM is not available in the provided data, the close proximity in FCF yields suggests that both companies are quite efficient in their cash conversion, although TSM’s higher net margin points to a more profitable core operation. Ultimately, TSM stock demonstrates superior profitability, though both are reasonable in cash generation relative to their market capitalization.

Wall Street view: ASML Holding N.V. vs Taiwan Semiconductor Manufacturing Company Limited analyst ratings

The sentiment from Wall Street analysts appears broadly positive for both semiconductor industry leaders, with both ASML Holding N.V. and Taiwan Semiconductor Manufacturing Company Limited holding a consensus “Buy” rating. However, a deeper dive into the analyst recommendations reveals a nuanced preference. Of the 25 analysts covering Taiwan Semiconductor Manufacturing Company Limited, a robust 72.0% have issued a “Buy” rating. This strong endorsement is coupled with a consensus price target of $427.5, suggesting an upside potential of +8.0% from its current price.

In contrast, ASML, while also rated a “Buy” by the consensus, has a slightly lower percentage of “Buy” ratings from its larger analyst pool. Out of 45 analysts, 57.8% recommend buying ASML Holding N.V. stock. Despite this, the consensus price target for ASML is $1694, indicating a more substantial potential upside of +15.1%. Therefore, while Taiwan Semiconductor Manufacturing Company Limited enjoys a higher percentage of positive recommendations, ASML offers a more significant expected return based on current analyst projections. It’s important to remember that these targets may vary depending on future estimate revisions and market dynamics.

Which investor profile fits ASML vs TSM?

For the **growth investor**, both ASML Holding N.V. and Taiwan Semiconductor Manufacturing Company Limited present compelling arguments, albeit with different strengths. TSM’s impressive revenue expansion of +33.0% and its significantly higher EBITDA margin of 71.17% make it a clear frontrunner for investors prioritizing rapid topline growth and operational efficiency. The company’s critical role in manufacturing cutting-edge semiconductors positions it to capitalize on sustained demand for advanced technology. However, ASML stock should not be overlooked; its +15.1% analyst price target upside suggests a strong belief in its future growth, despite a comparatively slower historical revenue momentum.

From the perspective of a **value investor**, Taiwan Semiconductor Manufacturing Company Limited appears to offer a more attractive entry point. Its earnings multiple of 29.64x is notably lower than ASML’s 48.28x, indicating a more favorable price relative to its current profits. Furthermore, TSM trades at a price-to-book ratio of 9.71x compared to ASML Holding N.V.’s much higher 23.2x. The discounted cash flow (DCF) analysis also supports TSM, showing a -61.3% discount from fair value, which is less severe than ASML’s -76.2%. These metrics suggest that TSM is trading at a more fundamental discount, appealing to those seeking undervalued opportunities.

For an **income investor**, neither ASML Holding N.V. nor Taiwan Semiconductor Manufacturing Company Limited stands out as a primary choice. Both companies offer a negligible dividend yield of 0.01%, signifying that their focus is on reinvesting earnings back into the business for growth rather than distributing substantial dividends to shareholders. Investors solely seeking significant regular income streams would likely find these stocks unsuitable for their portfolios. This is not investment advice. Always do your own research.

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