NVDA vs. TSM: A Head-to-Head Stock Comparison
Here’s a clear look at NVDA and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | NVDA | TSM |
|---|---|---|
| Company Name | NVIDIA Corporation | Taiwan Semiconductor Manufacturing Company Limited |
| Country | United States | Taiwan |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Semiconductors & Semiconductor Equipment | Semiconductors & Semiconductor Equipment |
| GICS Industry | Semiconductors & Semiconductor Equipment | Semiconductors & Semiconductor Equipment |
| GICS Sub-Industry | Semiconductors | Semiconductors |
| Market Capitalization | 5,140.51 billion USD | 2,147.95 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | January 22, 1999 | October 9, 1997 |
| Security Type | Common Stock | ADR |
NVDA is a standard domestic listing, while TSM trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
NVDA’s market capitalization (5,140.51 billion USD) is substantially larger than TSM’s (2,147.95 billion USD), indicating a significant difference in their market valuations.
TSM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. NVDA, on the other hand, is a domestic entity.
Historical Performance
This chart compares the performance of NVDA and TSM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | NVDA | TSM |
|---|---|---|
| 5-Day Price Return | 6.58% | 0.66% |
| 13-Week Price Return | 21.42% | 29.38% |
| 26-Week Price Return | 4.24% | 54.73% |
| 52-Week Price Return | 80.68% | 17.52% |
| Month-to-Date Return | 5.98% | 7.26% |
| Year-to-Date Return | 13.40% | 47.74% |
| 10-Day Avg. Volume | 165.46M | 47.88M |
| 3-Month Avg. Volume | 169.51M | 41.44M |
| 3-Month Volatility | 39.34% | 37.12% |
| Beta | 2.26 | 1.20 |
NVDA’s beta of 2.26 points to significantly higher volatility compared to TSM (beta: 1.20), suggesting NVDA has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
NVDA
104.37%
Semiconductors & Semiconductor Equipment Industry
- Max
- 48.79%
- Q3
- 19.97%
- Median
- 7.89%
- Q1
- 0.23%
- Min
- -28.42%
NVDA’s Return on Equity of 104.37% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
TSM
36.93%
Semiconductors & Semiconductor Equipment Industry
- Max
- 48.79%
- Q3
- 19.97%
- Median
- 7.89%
- Q1
- 0.23%
- Min
- -28.42%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s Return on Equity of 36.93% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
NVDA
55.60%
Semiconductors & Semiconductor Equipment Industry
- Max
- 55.60%
- Q3
- 23.51%
- Median
- 10.31%
- Q1
- -0.69%
- Min
- -34.23%
A Net Profit Margin of 55.60% places NVDA in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
TSM
47.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 55.60%
- Q3
- 23.51%
- Median
- 10.31%
- Q1
- -0.69%
- Min
- -34.23%
A Net Profit Margin of 47.00% places TSM in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
NVDA
60.38%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 27.09%
- Median
- 12.40%
- Q1
- 2.30%
- Min
- -25.47%
An Operating Profit Margin of 60.38% places NVDA in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TSM
53.31%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 27.09%
- Median
- 12.40%
- Q1
- 2.30%
- Min
- -25.47%
An Operating Profit Margin of 53.31% places TSM in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | NVDA | TSM |
|---|---|---|
| Return on Equity (TTM) | 104.37% | 36.93% |
| Return on Assets (TTM) | 75.76% | 24.92% |
| Net Profit Margin (TTM) | 55.60% | 47.00% |
| Operating Profit Margin (TTM) | 60.38% | 53.31% |
| Gross Profit Margin (TTM) | 71.31% | 61.87% |
Financial Strength
Current Ratio (MRQ)
NVDA
3.91
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.65
- Q3
- 4.58
- Median
- 2.90
- Q1
- 2.27
- Min
- 1.23
NVDA’s Current Ratio of 3.91 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
TSM
2.49
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.65
- Q3
- 4.58
- Median
- 2.90
- Q1
- 2.27
- Min
- 1.23
TSM’s Current Ratio of 2.49 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
NVDA
0.05
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.34
- Q3
- 0.57
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
NVDA’s Debt-to-Equity Ratio of 0.05 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
TSM
0.17
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.34
- Q3
- 0.57
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
TSM’s Debt-to-Equity Ratio of 0.17 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
NVDA
75.66
Semiconductors & Semiconductor Equipment Industry
- Max
- 135.68
- Q3
- 58.79
- Median
- 14.73
- Q1
- 2.53
- Min
- -37.06
NVDA’s Interest Coverage Ratio of 75.66 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 135.68
- Q3
- 58.79
- Median
- 14.73
- Q1
- 2.53
- Min
- -37.06
TSM’s Interest Coverage Ratio of 8.32 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | NVDA | TSM |
|---|---|---|
| Current Ratio (MRQ) | 3.91 | 2.49 |
| Quick Ratio (MRQ) | 3.14 | 2.31 |
| Debt-to-Equity Ratio (MRQ) | 0.05 | 0.17 |
| Interest Coverage Ratio (TTM) | 75.66 | 8.32 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | NVDA | TSM |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 73.21% | 35.13% |
| Revenue Growth (TTM vs Prior YoY) | 65.47% | 30.66% |
| 3-Year Revenue CAGR | 100.05% | 18.94% |
| 5-Year Revenue CAGR | 66.90% | 23.25% |
EPS Growth
EPS Growth at a Glance
| Symbol | NVDA | TSM |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 96.66% | 58.32% |
| EPS Growth (TTM vs Prior YoY) | 66.76% | 47.30% |
| 3-Year EPS CAGR | 204.08% | 19.11% |
| 5-Year EPS CAGR | 95.27% | 27.10% |
Dividend
Dividend Yield (TTM)
NVDA
0.02%
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.98%
- Q3
- 0.81%
- Median
- 0.27%
- Q1
- 0.00%
- Min
- 0.00%
NVDA’s Dividend Yield of 0.02% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
TSM
0.84%
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.98%
- Q3
- 0.81%
- Median
- 0.27%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.84%, TSM offers a more attractive income stream than most of its peers in the Semiconductors & Semiconductor Equipment industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
NVDA
0.81%
Semiconductors & Semiconductor Equipment Industry
- Max
- 168.19%
- Q3
- 72.81%
- Median
- 22.20%
- Q1
- 0.00%
- Min
- 0.00%
NVDA’s Dividend Payout Ratio of 0.81% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TSM
25.55%
Semiconductors & Semiconductor Equipment Industry
- Max
- 168.19%
- Q3
- 72.81%
- Median
- 22.20%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Payout Ratio of 25.55% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | NVDA | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.02% | 0.84% |
| Dividend Payout Ratio (TTM) | 0.81% | 25.55% |
Valuation
Price-to-Earnings Ratio (TTM)
NVDA
43.19
Semiconductors & Semiconductor Equipment Industry
- Max
- 181.91
- Q3
- 100.05
- Median
- 57.82
- Q1
- 38.78
- Min
- 13.96
NVDA’s P/E Ratio of 43.19 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
TSM
30.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 181.91
- Q3
- 100.05
- Median
- 57.82
- Q1
- 38.78
- Min
- 13.96
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s P/E Ratio of 30.25 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
NVDA
24.02
Semiconductors & Semiconductor Equipment Industry
- Max
- 31.49
- Q3
- 15.35
- Median
- 8.59
- Q1
- 4.32
- Min
- 1.15
NVDA’s P/S Ratio of 24.02 is in the upper echelon for the Semiconductors & Semiconductor Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TSM
14.22
Semiconductors & Semiconductor Equipment Industry
- Max
- 31.49
- Q3
- 15.35
- Median
- 8.59
- Q1
- 4.32
- Min
- 1.15
TSM’s P/S Ratio of 14.22 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
NVDA
28.81
Semiconductors & Semiconductor Equipment Industry
- Max
- 15.44
- Q3
- 8.26
- Median
- 3.95
- Q1
- 1.89
- Min
- 0.78
At 28.81, NVDA’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
TSM
7.75
Semiconductors & Semiconductor Equipment Industry
- Max
- 15.44
- Q3
- 8.26
- Median
- 3.95
- Q1
- 1.89
- Min
- 0.78
TSM’s P/B Ratio of 7.75 is within the conventional range for the Semiconductors & Semiconductor Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | NVDA | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 43.19 | 30.25 |
| Price-to-Sales Ratio (TTM) | 24.02 | 14.22 |
| Price-to-Book Ratio (MRQ) | 28.81 | 7.75 |
| Price-to-Free Cash Flow Ratio (TTM) | 53.64 | 55.67 |