TSM vs GFS: TSMC vs GlobalFoundries Stock Comparison: AI Score, Valuation, Performance and Upside
TSMC is the world's only advanced logic foundry capable of manufacturing AI chips at 3nm and below, while GlobalFoundries is a specialty foundry focused on mature-node analog, RF, and automotive chips primarily in the US. TSMC has the most valuable competitive position in all of semiconductors; GlobalFoundries has the most strategic US-domestic semiconductor manufacturing position.
TSM vs GFS is the world's most advanced and essential semiconductor foundry versus a US-centric specialty foundry at mature nodes — TSMC wins if AI chip demand continues requiring the world's most advanced logic; GlobalFoundries wins if CHIPS Act reshoring, defense procurement, and automotive mature-node recovery compound.
TSM holds the edge across 3 of 5 key metrics in this comparison. TSM has delivered stronger 1-year price return (+40.04% vs +38.92%), though GFS has the better forward P/E setup (17.04x vs 18.35x for TSM). TSM leads on both revenue growth (36.00%) and operating margin (60.34%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for GFS (+71.50%) than for TSM (+38.40%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- want the world's most essential semiconductor manufacturer with a monopoly on advanced logic production
- value TSMC's AI chip demand through NVIDIA, AMD, and Apple as the primary growth driver
- are comfortable with Taiwan geopolitical risk in exchange for exposure to the most critical semiconductor company
- prefer TSMC's growing geographic diversification (Arizona, Japan, Germany fabs) as a long-term risk reduction
- want US-domestic semiconductor manufacturing exposed to CHIPS Act reshoring investment
- value GlobalFoundries' specialty analog, RF, and automotive node expertise at mature processes
- believe defense semiconductor demand and CHIPS Act funding are significant structural tailwinds for US foundries
- prefer a lower-risk, lower-valuation foundry with no leading-edge geopolitical exposure vs TSMC's Taiwan concentration
| Metric | TSM | GFS |
|---|---|---|
| AI scorei | 77.5 | 32.7 |
| AI ranki | #16 | #2007 |
| Latest closei | $422.25 | $48.76 |
| 1M returni | +2.33% | +14.06% |
| 3M returni | +3.33% | -16.28% |
| 6M returni | +16.79% | -3.23% |
| 1Y returni | +40.04% | +38.92% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TSM | GFS |
|---|---|---|
| 1Y ago | $14.15K (+41.5%) started 2025-10-15 | $14.1K (+41.0%) started 2025-10-16 |
| 5Y ago | $43.28K (+332.8%) started 2021-10-15 | $10.51K (+5.1%) started 2021-10-28 |
| 10Y ago | $225.42K (+2154.2%) started 2016-10-17 | $10.51K (+5.1%) started 2021-10-28 |
Hypothetical — past performance does not guarantee future results.
| Metric | TSM | GFS |
|---|---|---|
| Market capi | $2.19T | $24.56B |
| Trailing P/Ei | 27.37 | 34.97 |
| Forward P/Ei | 18.35 | 17.04 |
| Price/Salesi | 0.49 | 3.08 |
| EV/Revenuei | 3.48 | 3.45 |
| Analyst targeti | $584.39 | $76.76 |
| Target upsidei | +38.40% | +71.50% |
| Metric | TSM | GFS |
|---|---|---|
| Revenue growthi | 36.00% | 5.80% |
| Earnings growthi | 77.40% | -26.80% |
| EPS growthi | +77.40% | -26.80% |
| FCF margini | +16.46% | +10.93% |
| Operating margini | 60.34% | 9.74% |
| Profit margini | 49.92% | 10.32% |
| ROIC proxyi | 39.97% | 6.17% |
| Return on equityi | 39.97% | 6.17% |
| Dividend yieldi | 0.85% | 1.07% |
| Payout ratioi | 25.44% | 9.38% |
| Dividend growth streaki | 2 yrs | N/A |
| Betai | 1.24 | 1.80 |
| Debt/equityi | 16.50 | 14.13 |
| Current ratioi | 2.46 | 2.48 |
| Quick ratioi | 2.13 | 1.73 |
Over the past year, TSM and GFS have moved moderately in the same direction (correlation of 0.47), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | TSM | GFS |
|---|---|---|---|
| 1Y | Growthi | +40.04% | +41.03% |
| CAGRi | +40.07% | +41.12% | |
| Volatilityi | 38.77% | 59.52% | |
| Sharpe ratioi | 0.95 | 0.80 | |
| Sortino ratioi | 1.42 | 1.22 | |
| Max drawdowni | 21.55% | 52.48% | |
| Current drawdowni | 13.08% | 45.80% | |
| Avg drawdowni | 6.18% | 16.78% | |
| Ulcer Indexi | 7.86% | 24.70% | |
| Max daily dropi | 6.98% | 10.83% | |
| Max wkly dropi | 11.05% | 19.52% | |
| 5Y | Growthi | +298.24% | +5.09% |
| CAGRi | +31.84% | +1.00% | |
| Volatilityi | 38.47% | 51.74% | |
| Sharpe ratioi | 0.80 | 0.19 | |
| Sortino ratioi | 1.21 | 0.28 | |
| Max drawdowni | 56.47% | 61.53% | |
| Current drawdowni | 13.08% | 45.80% | |
| Avg drawdowni | 17.69% | 34.76% | |
| Ulcer Indexi | 23.31% | 37.72% | |
| Max daily dropi | 13.33% | 10.83% | |
| Max wkly dropi | 16.17% | 23.06% | |
| 10Y | Growthi | +1642.04% | +5.09% |
| CAGRi | +33.10% | +1.00% | |
| Volatilityi | 34.85% | 51.74% | |
| Sharpe ratioi | 0.87 | 0.19 | |
| Sortino ratioi | 1.31 | 0.28 | |
| Max drawdowni | 56.47% | 61.53% | |
| Current drawdowni | 13.08% | 45.80% | |
| Avg drawdowni | 12.92% | 34.76% | |
| Ulcer Indexi | 18.08% | 37.72% | |
| Max daily dropi | 14.03% | 10.83% | |
| Max wkly dropi | 16.17% | 23.06% |
| Category | TSM | GFS |
|---|---|---|
| Company | Taiwan Semiconductor Manufacturing Company Limited | GlobalFoundries Inc. |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | World's largest and most advanced semiconductor foundry manufacturing chips for Apple, NVIDIA, AMD, Qualcomm, and virtually every leading semiconductor company. TSMC's 3nm, 2nm, and 1.4nm nodes are the most advanced in the world. | Specialty semiconductor foundry focused on mature-node chips for automotive, RF communications, IoT, smart devices, and defense. GlobalFoundries does not compete in sub-5nm leading-edge logic — it focuses on 12nm–65nm node manufacturing. |
| Investor focus | CoWoS advanced packaging capacity for AI chips, N2/N3 leading-edge node revenue ramp, US (TSMC Arizona) and Japan fab expansion, and NVIDIA AI chip production. | Automotive and RF semiconductor demand recovery, US CHIPS Act capacity expansion investments, long-term supply agreements with customers, and profitability improvement. |
- TSMC is the world's only manufacturer capable of producing cutting-edge chips below 5nm at commercial scale — a global monopoly on advanced logic production
- AI chip demand (NVIDIA, AMD, Apple) is driving record CoWoS advanced packaging and leading-edge node demand
- TSMC's customer relationships with every major fabless semiconductor company are deeply embedded across multi-year product planning cycles
- GlobalFoundries' US manufacturing facilities (NY, VT) make it the largest US-headquartered semiconductor foundry — uniquely positioned for CHIPS Act funding and defense semiconductor procurement
- Specialty analog, RF, and automotive nodes require manufacturing expertise that GlobalFoundries has invested in for decades
- Long-term supply agreements with automotive and RF customers provide revenue visibility independent of spot foundry market dynamics
- Geopolitical risk from Taiwan's proximity to China creates supply chain concentration concern — US and Japan fabs are being built to diversify
- Leading-edge node capital intensity is enormous — TSMC's capex is $35B+ per year and rising with AI demand
- Intel Foundry Services and Samsung Foundry are expanding competitive alternatives to TSMC for leading-edge logic
- Mature-node semiconductor inventory correction has significantly reduced utilization and revenue across 2023-2024
- TSMC, Samsung, and SMIC also produce mature-node chips — foundry competition is intense at 12nm and above
- GlobalFoundries is not growing into leading-edge AI chip demand — its specialty node focus limits participation in the largest semiconductor growth opportunity
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