TSMC vs Intel

This page provides a comprehensive comparison between TSMC (Taiwan Semiconductor Manufacturing Co.) and Intel (Intel Corporation). Explore their distinct business models, analyse their financial performance, and understand their respective market contexts to gain insight into these two significant players in the semiconductor industry. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

TSM

Metric

INTC

$1.45T

Market Cap

$212.24B

6.04%

Potential Profit

-14.97%

Buy

Analyst Rating

Hold

Why It's Moving

TSMC's Stellar Q4 Earnings and AI-Fueled Guidance Ignite a Fiery 2026 Start

Q4 revenue hit NT$1.046 trillion, topping consensus by 1%, with profits up 22% YoY, underscoring relentless demand from Nvidia, AMD, and Apple for cutting-edge nodes.
2026 outlook shines with Q1 revenue guidance up to $35.8 billion—a potential 40% YoY jump—driving leading-edge margins beyond expectations amid the AI supercycle.
U.S. license for China plant ops and accelerated Arizona Phase 2 production to H2 2027 ease supply fears, bolstering global expansion amid trade deal buzz.

Sentiment:

🐃Bullish

Intel's shares surge 27% in 2026 on AI-fueled PC and server momentum.

Panther Lake CPUs on 18A node deliver 120 TOPS AI performance and 25+ hour battery life, reigniting Intel's edge in the exploding AI PC market.
Server CPU demand is outstripping supply even after capacity shifts, with sell-outs expected in H1 2026 to fuel data center profits.
18A foundry advances position Intel to snag external customers in the AI rush, bolstering its IDM 2.0 reinvention.

Sentiment:

🐃Bullish

TSMC's Stellar Q4 Earnings and AI-Fueled Guidance Ignite a Fiery 2026 Start

Q4 revenue hit NT$1.046 trillion, topping consensus by 1%, with profits up 22% YoY, underscoring relentless demand from Nvidia, AMD, and Apple for cutting-edge nodes.
2026 outlook shines with Q1 revenue guidance up to $35.8 billion—a potential 40% YoY jump—driving leading-edge margins beyond expectations amid the AI supercycle.
U.S. license for China plant ops and accelerated Arizona Phase 2 production to H2 2027 ease supply fears, bolstering global expansion amid trade deal buzz.

Sentiment:

🐃Bullish

Intel's shares surge 27% in 2026 on AI-fueled PC and server momentum.

Panther Lake CPUs on 18A node deliver 120 TOPS AI performance and 25+ hour battery life, reigniting Intel's edge in the exploding AI PC market.
Server CPU demand is outstripping supply even after capacity shifts, with sell-outs expected in H1 2026 to fuel data center profits.
18A foundry advances position Intel to snag external customers in the AI rush, bolstering its IDM 2.0 reinvention.

Sentiment:

🐃Bullish

Investment Analysis

TSMC

TSM

Pros

TSMC holds dominant position as world's largest advanced semiconductor foundry, essential for AI chip supply.
Surged 55.6% in past year driven by record AI demand outstripping supply.
Maintains strong gross margins of 58-60% despite higher overseas fab costs, with high Taiwan utilisation.

Considerations

Exposed to geopolitical risks in Taiwan amid ongoing tensions.
Rising capital expenditure to $50 billion in 2026 pressures cash flows for 2nm expansion.
Potential gross margin normalisation as higher-cost US fabs increase in operational mix.

Intel

INTC

Pros

Intel advances foundry ambitions with new US fabs supported by government subsidies.
Diversified revenue from CPUs, data centre, and emerging AI products reduces reliance on single segment.
Improving balance sheet through cost-cutting initiatives and operational efficiencies in 2025.

Considerations

Lags TSMC in advanced node technology, losing market share in high-end AI chips.
Persistent profitability challenges with gross margins below industry leaders amid high capex.
Execution risks in ambitious foundry ramp-up and competition from Asian rivals.

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