Arm (ARM) vs Taiwan Semiconductor Manufacturing (TSM)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 7, 2026.
Summary
Arm (ARM) has outperformed Taiwan Semiconductor Manufacturing (TSM) over the past year, gaining 84.7% versus a gain of 60.6%. Taiwan Semiconductor Manufacturing is the larger company by market cap ($2.45 trillion vs $314.39 billion), about 7.8 times the size. On valuation, Taiwan Semiconductor Manufacturing trades at a lower forward P/E (21.5x vs 96.1x for Arm).
Taiwan Semiconductor Manufacturing pays a dividend yielding 5.51%, while Arm does not currently pay one. Taiwan Semiconductor Manufacturing converts more of its revenue into profit, with a net margin of 40.0% versus 18.4%.
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 | ARM | TSM |
|---|---|---|
| Share price | $294.37 | $472.20 |
| Market cap | $314.39B | $2.45T |
| 1-day change | -2.71% | -2.09% |
| YTD return | +169.30% | +55.39% |
| 1-year return | +84.74% | +60.60% |
| 5-year return | — | +311.11% |
| P/E ratio (TTM) | 303.47 | 35.06 |
| Forward P/E | 96.11 | 21.54 |
| EPS (TTM) | $0.97 | $13.47 |
| Dividend yield | 0.00% | 5.51% |
| Annual dividend | $0.00 | $26.00 |
| Revenue (latest FY) | $4.92B | $88.27B |
| Revenue growth (YoY) | +22.79% | +25.03% |
| Net income (latest FY) | $904.00M | $35.33B |
| Gross margin | 97.54% | 56.12% |
| Operating margin | 18.29% | 45.68% |
| Net margin | 18.37% | 40.02% |
| 52-week high | $452.70 | $487.47 |
| 52-week low | $100.02 | $266.82 |
| Distance from 52-week high | -34.97% | -3.13% |
| Analyst consensus | buy | strong_buy |
| Avg. price target upside | -1.24% | +17.54% |
| Average volume | 5.25M | 11.38M |
| Shares outstanding | 1.07B | 5.19B |
| Employees | 9,584 | 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 7.8 times larger than Arm by market value ($2.45T vs $314.39B).
- ARM has outperformed TSM by 24.1 percentage points over the past year.
- Arm trades at a higher earnings multiple (303.5x vs 35.1x trailing P/E).
- Taiwan Semiconductor Manufacturing offers a meaningfully higher dividend yield (5.51% vs 0.00%).
- Taiwan Semiconductor Manufacturing is more profitable, keeping 40.0 cents of every revenue dollar as net income versus 18.4 cents for Arm.
About Arm
ARM stock →Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software.
Technology · Semiconductors · 9,584 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
ARM vs TSM FAQ
Which is bigger, Arm or Taiwan Semiconductor Manufacturing?
Taiwan Semiconductor Manufacturing (TSM) is larger, with a market capitalization of $2.45T compared with $314.39B for Arm (ARM).
Which stock has performed better over the past year, ARM or TSM?
ARM returned +84.74% 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, ARM or TSM?
TSM has the lower trailing P/E at 35.1, versus 303.5 for ARM. 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, Arm or Taiwan Semiconductor Manufacturing?
Taiwan Semiconductor Manufacturing pays a dividend yielding 5.51%, while Arm does not currently pay a regular dividend.
Are Arm and Taiwan Semiconductor Manufacturing in the same industry?
Yes. Both are classified in the Semiconductors industry within the Technology sector.