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TSM vs TXN
Which Stock Would AI Choose? Taiwan Semiconductor Manufacturing (TSM) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- TSM has delivered superior long-term returns, with a 93.88% one-year gain compared to TXN's 8.05%, driven by AI chip demand.
- Recent market activity shows volatility for both, but TSM maintains stronger year-to-date performance at 13.29% versus TXN's 12.73%.
- TSM, the leading pure-play foundry, benefits from advanced node demand, while TXN focuses on analog chips with stable industrial exposure.
- Semiconductor sector bots on Tickeron show high returns up to 125% annualized, highlighting AI-driven opportunities in chips.
- Geopolitical and supply risks weigh on TSM, while TXN offers dividend reliability amid cyclical recovery.
Introduction
Taiwan Semiconductor Manufacturing (TSM) and Texas Instruments (TXN) represent key players in the semiconductor industry, with TSM dominating advanced chip foundry services and TXN leading in analog and embedded processing. This stock comparison analyzes their business models, recent performance, and market positioning amid surging AI and data center demand. Traders seeking growth exposure may favor TSM's momentum, while investors prioritizing stability and dividends might lean toward TXN. Understanding relative performance aids decisions in a volatile sector influenced by supply chains and tech cycles.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing (TSM), the world's largest dedicated chip foundry, produces advanced semiconductors for clients like Nvidia and Apple, holding over 70% market share in cutting-edge nodes. In recent weeks, TSM stock has shown resilience amid volatility, closing around $338-344 after dips to $325 lows, buoyed by strong sales growth of 22% in February and AI infrastructure demand. Year-to-date gains stand at 13.29%, outperforming broader indices over one year at 93.88%. Sentiment reflects optimism from capacity expansions and high-performance computing, tempered by energy risks and supply constraints noted by partners like Broadcom. Trading volume spiked during recoveries, signaling sustained investor interest in its AI catalysts.
TXN Overview and Recent Performance
Texas Instruments (TXN), a semiconductor design and manufacturing leader, specializes in analog chips and embedded processors for industrial, automotive, and consumer applications. Recent market activity has seen TXN fluctuate between $187-195, with gains to $194 amid broader chip rallies, reflecting YTD returns of 12.73%. The stock's one-year return of 8.05% lags peers but benefits from innovations like 800V DC power architecture for AI data centers. Performance draws support from cyclical recovery in end-markets and analyst upgrades, though valuation concerns persist at a 35.65 PE ratio. Elevated volumes during upswings indicate positioning for industrial rebound and power efficiency trends.
Trending AI Robots
Tickeron’s Trending AI Robots page curates the top performers from hundreds of AI trading bots that analyze thousands of tickers across diverse strategies, timeframes, and styles like swing trading, trend following, and hedging. Only the most suitable for current volatility—showing annualized returns up to 125%, win rates of 55-89%, and profit factors exceeding 2.5—earn a spot in this dynamic section. Semiconductor-focused bots, such as those on SOXL or manufacturing peers like LRCX and ASML, have posted 90-112% annualized gains with low drawdowns, capturing sector momentum. These bots employ advanced financial learning models for real-time signals. Explore Trending AI Robots to align automated strategies with market conditions.
Head-to-Head Comparison
TSM’s pure-play foundry model contrasts TXN’s integrated design focus, with TSM driving growth via AI-advanced nodes (60%+ of sales) versus TXN’s diversified analog portfolio across autos and industrials. Recent momentum favors TSM, with sharper recoveries and superior YTD/1Y returns, while TXN exhibits steadier volatility. Risk factors include TSM’s geopolitical exposure in Taiwan and capacity bottlenecks, offset by TXN’s U.S.-based stability but cyclical downturn sensitivity. Sector tailwinds like data centers boost both, yet TSM leads sentiment from AI hyperscalers, trading at a 32.57 PE versus TXN’s 35.65.
Tickeron AI Verdict
Tickeron’s AI currently favors TSM due to its trend consistency in AI-driven demand, relative outperformance, and positioning amid foundry bottlenecks that underscore scarcity value. Observable catalysts like sales surges and sector bot gains (up to 112% annualized) support higher probability of near-term upside, though TXN’s stability offers a counterbalance in risk-averse scenarios.
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 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 TSM is a StrongBuy and TXN 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).
TSM’s FA Score shows that 3 FA rating(s) are green whileTXN’s FA Score has 4 green FA rating(s).
- TSM’s FA Score: 3 green, 2 red.
- TXN’s FA Score: 4 green, 1 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.
TSM’s TA Score shows that 5 TA indicator(s) are bullish while TXN’s TA Score has 6 bullish TA indicator(s).
- TSM’s TA Score: 5 bullish, 5 bearish.
- TXN’s TA Score: 6 bullish, 4 bearish.
Price Growth
TSM (@Semiconductors) experienced а -0.90% price change this week, while TXN (@Semiconductors) price change was +7.84% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +10.35%. For the same industry, the average monthly price growth was +27.00%, and the average quarterly price growth was +26.44%.
Reported Earning Dates
TSM is expected to report earnings on Jul 16, 2026.
TXN is expected to report earnings on Apr 22, 2026.
Industries' Descriptions
@Semiconductors (+10.35% 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.
| TSM | TXN | TSM / TXN | |
| Capitalization | 1.67T | 213B | 783% |
| EBITDA | 2.74T | 8.25B | 33,228% |
| Gain YTD | 21.192 | 35.584 | 60% |
| P/E Ratio | 31.34 | 42.88 | 73% |
| Revenue | 3.81T | 17.7B | 21,520% |
| Total Cash | N/A | 4.88B | - |
| Total Debt | N/A | 14B | - |
TSM | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 16 | 25 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 41 Fair valued | 14 Undervalued | |
PROFIT vs RISK RATING 1..100 | 9 | 45 | |
SMR RATING 1..100 | 26 | 32 | |
PRICE GROWTH RATING 1..100 | 39 | 8 | |
P/E GROWTH RATING 1..100 | 21 | 24 | |
SEASONALITY SCORE 1..100 | 50 | 65 |
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.
TXN's Valuation (14) in the Semiconductors industry is in the same range as TSM (41). This means that TXN’s stock grew similarly to TSM’s over the last 12 months.
TSM's Profit vs Risk Rating (9) in the Semiconductors industry is somewhat better than the same rating for TXN (45). This means that TSM’s stock grew somewhat faster than TXN’s over the last 12 months.
TSM's SMR Rating (26) in the Semiconductors industry is in the same range as TXN (32). This means that TSM’s stock grew similarly to TXN’s over the last 12 months.
TXN's Price Growth Rating (8) in the Semiconductors industry is in the same range as TSM (39). This means that TXN’s stock grew similarly to TSM’s over the last 12 months.
TSM's P/E Growth Rating (21) in the Semiconductors industry is in the same range as TXN (24). This means that TSM’s stock grew similarly to TXN’s over the last 12 months.
| TSM | TXN | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 55% | 1 day ago 69% |
| Stochastic ODDS (%) | 1 day ago 64% | 1 day ago 71% |
| Momentum ODDS (%) | 1 day ago 72% | 1 day ago 52% |
| MACD ODDS (%) | 1 day ago 75% | 1 day ago 61% |
| TrendWeek ODDS (%) | 1 day ago 65% | 1 day ago 57% |
| TrendMonth ODDS (%) | 1 day ago 75% | 1 day ago 52% |
| Advances ODDS (%) | 14 days ago 71% | 1 day ago 55% |
| Declines ODDS (%) | 6 days ago 62% | 23 days ago 56% |
| BollingerBands ODDS (%) | 1 day ago 66% | 1 day ago 71% |
| Aroon ODDS (%) | 1 day ago 69% | 1 day ago 45% |
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