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ADI vs TSM
Which Stock Would AI Choose? Analog Devices (ADI) vs. Taiwan Semiconductor Manufacturing Company (TSM) Stock Comparison
Key Takeaways
- Both ADI and TSM have demonstrated strong year-over-year growth, with ADI reporting 30% revenue increase in Q1 FY2026 and TSM achieving 20%+ in Q4.
- TSM shares have surged nearly 90% over the past year, outpacing ADI's approximately 50% gain, driven by AI chip demand.
- Recent market activity shows pullbacks in both stocks, with ADI down around 13% in the past month and TSM experiencing similar volatility amid geopolitical tensions.
- ADI benefits from diversified industrial and communications growth, while TSM leads in advanced node foundry services for AI.
- Analyst sentiment remains positive for both, with upgrades for ADI and strong revenue beats for TSM.
- Year-to-date, ADI outperforms with around 15% gains versus TSM's 6-10%, reflecting relative stability.
Introduction
Analog Devices (ADI) and Taiwan Semiconductor Manufacturing Company (TSM) represent key players in the semiconductor sector, bridging analog signal processing and advanced chip manufacturing. This stock comparison analyzes their recent performance, growth drivers, and market positioning amid surging AI demand and supply chain dynamics. Traders seeking exposure to AI infrastructure and investors eyeing diversified semi plays will find value in understanding their contrasts in business models, momentum, and risks. With both stocks showing robust long-term gains but recent volatility, this head-to-head highlights relative strengths for informed portfolio decisions in the current market environment.
ADI Overview and Recent Performance
Analog Devices, Inc. (ADI) is a global leader in analog, mixed-signal, and digital signal processing integrated circuits, serving industrial, automotive, communications, and consumer markets. In recent market activity, ADI shares have experienced volatility, declining around 13% over the past month but maintaining year-to-date gains of approximately 15% and a 50%+ rise over the past year. Key influences include Q1 FY2026 results with revenue up 30% year-over-year to $3.16 billion, driven by 38% industrial segment growth to $1.49 billion and record data center orders fueled by AI infrastructure. Adjusted EPS rose 51% to $2.46, beating estimates, alongside an 11% dividend hike to $1.10, marking 22 years of increases. Gross margins expanded to 71.2%, boosting sentiment, though broader semi sector pressures contributed to short-term pullbacks. Analyst upgrades and 44% projected earnings growth underscore confidence in ADI's recovery and AI exposure.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company Limited (TSM), the world's largest dedicated semiconductor foundry, manufactures advanced chips for fabless clients like Nvidia and Apple, holding about 70% market share in foundry services. Recent weeks have seen TSM shares pull back amid geopolitical risks and market rotations, down around 14% monthly but up nearly 90% over the past year and 6-10% year-to-date. Q4 revenue jumped 20% to over $33 billion, beating forecasts on AI-driven demand for 3nm/5nm nodes, with January-February sales up 30%. Strong high-performance computing (HPC) and smartphone segments propelled growth, though helium shortages and tensions in supply chains pressured sentiment. Analysts highlight 25%+ CAGR targets through 2029, with gross margins above 56% and robust ROE (return on equity) in high-20s. Despite volatility from Taiwan risks, TSM's scale and AI leadership sustain positive outlooks.
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Head-to-Head Comparison
ADI and TSM both thrive on AI tailwinds but differ in models: ADI designs analog/power ICs (stable ~65% margins, broad end-markets like industrial at 47% revenue), while TSM operates a pure-play foundry (high capex, pricing power on advanced nodes). Growth drivers contrast with ADI's diversified recovery (communications up 63%) versus TSM's AI/HPC surge (30%+ revenue CAGR). Recent momentum favors TSM's 90% 1-year return over ADI's 50%, though ADI shows relative YTD stability. Risks include cycle sensitivity for ADI and geopolitics/Taiwan exposure for TSM. Sector overlap in semis positions TSM for scale, ADI for resilience; sentiment tilts to TSM on AI purity despite premiums (TSM P/E ~30x, ADI higher).
Tickeron AI Verdict
Tickeron’s AI currently favors TSM over ADI, based on superior trend consistency in AI revenue growth, stronger long-term momentum (90% 1-year returns), and catalysts like advanced node ramps amid robust demand. While ADI offers stability via diversification and margins, TSM's market leadership and projected 25% CAGR provide higher probabilistic upside in the semi cycle, tempered by geopolitical factors.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ADI is a Hold and TSM is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ADI’s FA Score shows that 2 FA rating(s) are green whileTSM’s FA Score has 3 green FA rating(s).
- ADI’s FA Score: 2 green, 3 red.
- TSM’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ADI’s TA Score shows that 5 TA indicator(s) are bullish while TSM’s TA Score has 5 bullish TA indicator(s).
- ADI’s TA Score: 5 bullish, 5 bearish.
- TSM’s TA Score: 5 bullish, 5 bearish.
Price Growth
ADI (@Semiconductors) experienced а +8.87% price change this week, while TSM (@Semiconductors) price change was -0.03% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +10.22%. For the same industry, the average monthly price growth was +24.75%, and the average quarterly price growth was +27.22%.
Reported Earning Dates
ADI is expected to report earnings on May 27, 2026.
TSM is expected to report earnings on Jul 16, 2026.
Industries' Descriptions
@Semiconductors (+10.22% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| ADI | TSM | ADI / TSM | |
| Capitalization | 186B | 1.67T | 11% |
| EBITDA | 5.53B | 2.74T | 0% |
| Gain YTD | 40.945 | 21.192 | 193% |
| P/E Ratio | 69.66 | 31.34 | 222% |
| Revenue | 11.8B | 3.81T | 0% |
| Total Cash | 4.05B | N/A | - |
| Total Debt | 8.68B | N/A | - |
ADI | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 46 Fair valued | 46 Fair valued | |
PROFIT vs RISK RATING 1..100 | 12 | 9 | |
SMR RATING 1..100 | 77 | 26 | |
PRICE GROWTH RATING 1..100 | 4 | 39 | |
P/E GROWTH RATING 1..100 | 42 | 20 | |
SEASONALITY SCORE 1..100 | 65 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ADI's Valuation (46) in the Semiconductors industry is in the same range as TSM (46). This means that ADI’s stock grew similarly to TSM’s over the last 12 months.
TSM's Profit vs Risk Rating (9) in the Semiconductors industry is in the same range as ADI (12). This means that TSM’s stock grew similarly to ADI’s over the last 12 months.
TSM's SMR Rating (26) in the Semiconductors industry is somewhat better than the same rating for ADI (77). This means that TSM’s stock grew somewhat faster than ADI’s over the last 12 months.
ADI's Price Growth Rating (4) in the Semiconductors industry is somewhat better than the same rating for TSM (39). This means that ADI’s stock grew somewhat faster than TSM’s over the last 12 months.
TSM's P/E Growth Rating (20) in the Semiconductors industry is in the same range as ADI (42). This means that TSM’s stock grew similarly to ADI’s over the last 12 months.
| ADI | TSM | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 59% | 4 days ago 57% |
| Stochastic ODDS (%) | 4 days ago 56% | 4 days ago 77% |
| Momentum ODDS (%) | 4 days ago 69% | 4 days ago 67% |
| MACD ODDS (%) | 4 days ago 64% | 4 days ago 68% |
| TrendWeek ODDS (%) | 4 days ago 61% | 4 days ago 65% |
| TrendMonth ODDS (%) | 4 days ago 59% | 4 days ago 75% |
| Advances ODDS (%) | 4 days ago 60% | 13 days ago 71% |
| Declines ODDS (%) | 6 days ago 56% | 5 days ago 62% |
| BollingerBands ODDS (%) | 4 days ago 50% | 4 days ago 58% |
| Aroon ODDS (%) | 4 days ago 59% | 4 days ago 67% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| GOVT | 22.98 | -0.01 | -0.04% |
| iShares US Treasury Bond ETF | |||
| RTAI | 21.46 | -0.01 | -0.05% |
| Rareview Tax Advantaged Income ETF | |||
| SHDG | 31.95 | -0.04 | -0.14% |
| Soundwatch Hedged Equity ETF | |||
| DOL | 72.58 | -0.17 | -0.23% |
| WisdomTree True Developed Intl ETF | |||
| BTC | 33.78 | -0.52 | -1.52% |
| Grayscale Bitcoin Mini Trust ETF | |||
TSM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSM has been closely correlated with ASML. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if TSM jumps, then ASML could also see price increases.
| Ticker / NAME | Correlation To TSM | 1D Price Change % | ||
|---|---|---|---|---|
| TSM | 100% | -1.15% | ||
| ASML - TSM | 74% Closely correlated | +1.14% | ||
| LRCX - TSM | 73% Closely correlated | -1.66% | ||
| KLAC - TSM | 71% Closely correlated | +0.77% | ||
| MPWR - TSM | 71% Closely correlated | +1.53% | ||
| NVDA - TSM | 71% Closely correlated | +0.19% | ||
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