ARM vs TSM Comparison: AI Score, Valuation, Performance and Upside
Compare Arm Holdings and TSMC by royalty vs manufacturing revenue model, AI chip design ecosystem centrality, geopolitical risk profile, margin characteristics, and which semiconductor business model offers better long-term compounding.
Use this Arm Holdings vs TSMC comparison to evaluate the key differences across valuation, growth, profitability, and risk before making an investment decision.
TSM holds the edge across 4 of 5 key metrics in this comparison. TSM leads on both 1-year return (+68.82%) and forward P/E quality (18.95x vs 84.53x for ARM), a relatively favorable combination of momentum and valuation. Analyst consensus implies meaningfully more upside for TSM (+33.22%) than for ARM (+15.66%).
| Metric | ARM | TSM |
|---|---|---|
| AI score | 42.3 | 76.6 |
| AI rank | #928 | #16 |
| Latest close | $260.01 | $403.41 |
| 1M return | -27.59% | -8.49% |
| 6M return | +118.13% | +23.86% |
| 1Y return | +62.52% | +68.82% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ARM | TSM |
|---|---|---|
| 1Y ago | $16.25K (+62.5%) started 2025-07-24 | $17.07K (+70.7%) started 2025-07-24 |
| 5Y ago | $40.89K (+308.9%) started 2023-09-14 | $41.19K (+311.9%) started 2021-07-26 |
| 10Y ago | $40.89K (+308.9%) started 2023-09-14 | $234.89K (+2248.9%) started 2016-07-25 |
Hypothetical — past performance does not guarantee future results.
| Metric | ARM | TSM |
|---|---|---|
| Market cap | $277.71B | $2.09T |
| Trailing P/E | 305.89 | 35.42 |
| Forward P/E | 84.53 | 18.95 |
| Price/Sales | 56.45 | 0.47 |
| EV/Revenue | 55.81 | 3.32 |
| Analyst target | $300.73 | $537.43 |
| Target upside | +15.66% | +33.22% |
| Metric | ARM | TSM |
|---|---|---|
| Revenue growth | 20.10% | 36.00% |
| Earnings growth | 47.90% | 77.40% |
| EPS growth | +47.90% | +77.40% |
| FCF margin | +15.25% | +16.64% |
| Operating margin | N/A | N/A |
| Profit margin | 18.37% | 49.92% |
| ROIC proxy | 11.95% | 39.97% |
| Return on equity | 11.95% | 39.97% |
| Dividend yield | 0.00% | 0.91% |
| Beta | 3.77 | 1.25 |
| Debt/equity | 5.93 | 15.17 |
| Current ratio | 6.00 | 2.46 |
| Quick ratio | 5.83 | 2.13 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | ARM | TSM |
|---|---|---|---|
| 1Y | Growth | +62.52% | +68.82% |
| CAGR | +62.57% | +68.88% | |
| Sharpe ratio | 0.96 | 1.41 | |
| Max drawdown | 41.47% | 18.14% | |
| Max daily drop | 13.44% | 6.98% | |
| Max wkly drop | 25.35% | 10.46% | |
| 5Y | Growth | +308.89% | +278.41% |
| CAGR | +63.67% | +30.54% | |
| Sharpe ratio | 0.95 | 0.77 | |
| Max drawdown | 53.97% | 56.47% | |
| Max daily drop | 19.46% | 13.33% | |
| Max wkly drop | 30.98% | 16.17% | |
| 10Y | Growth | +308.89% | +1721.32% |
| CAGR | +63.67% | +33.69% | |
| Sharpe ratio | 0.95 | 0.88 | |
| Max drawdown | 53.97% | 56.47% | |
| Max daily drop | 19.46% | 14.03% | |
| Max wkly drop | 30.98% | 16.17% |
| Category | ARM | TSM |
|---|---|---|
| Company | ARM | TSM |
| Sector | N/A | N/A |
| Industry | N/A | N/A |
| Core business | N/A | N/A |
| Investor focus | N/A | N/A |
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