Applied Materials (AMAT) vs Taiwan Semiconductor Manufacturing (TSM)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 8, 2026.
Summary
Applied Materials (AMAT) has outperformed Taiwan Semiconductor Manufacturing (TSM) over the past year, gaining 146.1% versus a gain of 60.6%. Over five years, TSM leads with a +311.1% price change compared with +295.7% for AMAT. Taiwan Semiconductor Manufacturing is the larger company by market cap ($2.37 trillion vs $407.80 billion), about 5.8 times the size.
On valuation, Taiwan Semiconductor Manufacturing trades at a lower forward P/E (20.8x vs 27.8x for Applied Materials). Taiwan Semiconductor Manufacturing offers the higher dividend yield (5.70% vs 0.39%). Taiwan Semiconductor Manufacturing converts more of its revenue into profit, with a net margin of 40.0% versus 24.7%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | AMAT | TSM |
|---|---|---|
| Share price | $513.87 | $456.53 |
| Market cap | $407.80B | $2.37T |
| 1-day change | -1.30% | -3.32% |
| YTD return | +102.60% | +55.39% |
| 1-year return | +146.10% | +60.60% |
| 5-year return | +295.66% | +311.11% |
| P/E ratio (TTM) | 44.34 | 33.18 |
| Forward P/E | 27.81 | 20.82 |
| EPS (TTM) | $11.59 | $13.76 |
| Dividend yield | 0.39% | 5.70% |
| Annual dividend | $1.98 | $26.00 |
| Revenue (latest FY) | $28.37B | $88.27B |
| Revenue growth (YoY) | +4.39% | +25.03% |
| Net income (latest FY) | $7.00B | $35.33B |
| Gross margin | 48.67% | 56.12% |
| Operating margin | 29.22% | 45.68% |
| Net margin | 24.67% | 40.02% |
| 52-week high | $739.67 | $487.47 |
| 52-week low | $203.40 | $266.82 |
| Distance from 52-week high | -30.53% | -6.35% |
| Analyst consensus | strong_buy | strong_buy |
| Avg. price target upside | +24.34% | +21.57% |
| Average volume | 7.05M | 11.31M |
| Shares outstanding | 793.60M | 5.19B |
| Employees | 38,900 | 76,907 |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- Taiwan Semiconductor Manufacturing is about 5.8 times larger than Applied Materials by market value ($2.37T vs $407.80B).
- AMAT has outperformed TSM by 85.5 percentage points over the past year.
- Applied Materials trades at a higher earnings multiple (44.3x vs 33.2x trailing P/E).
- Taiwan Semiconductor Manufacturing offers a meaningfully higher dividend yield (5.70% vs 0.39%).
- Taiwan Semiconductor Manufacturing is more profitable, keeping 40.0 cents of every revenue dollar as net income versus 24.7 cents for Applied Materials.
- Taiwan Semiconductor Manufacturing grew revenue faster in its latest fiscal year (+25.03% vs +4.39%).
About Applied Materials
AMAT stock →Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally.
Technology · Semiconductors · 38,900 employees
About Taiwan Semiconductor Manufacturing
TSM stock →Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.
Technology · Semiconductors · 76,907 employees
AMAT vs TSM FAQ
Which is bigger, Applied Materials or Taiwan Semiconductor Manufacturing?
Taiwan Semiconductor Manufacturing (TSM) is larger, with a market capitalization of $2.37T compared with $407.80B for Applied Materials (AMAT).
Which stock has performed better over the past year, AMAT or TSM?
AMAT returned +146.10% over the past 12 months, compared with +60.60% for TSM (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, AMAT or TSM?
TSM has the lower trailing P/E at 33.2, versus 44.3 for AMAT. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Applied Materials or Taiwan Semiconductor Manufacturing?
Taiwan Semiconductor Manufacturing has the higher yield at 5.70%, compared with 0.39% for Applied Materials.
Are Applied Materials and Taiwan Semiconductor Manufacturing in the same industry?
Yes. Both are classified in the Semiconductors industry within the Technology sector.