Broadcom vs TSMC
Broadcom vs TSMC: This page compares business models, financial performance, and market context to explain how the two companies operate and compete in today’s semiconductor landscape in a neutral, accessible way. Educational content, not financial advice.
Broadcom vs TSMC: This page compares business models, financial performance, and market context to explain how the two companies operate and compete in today’s semiconductor landscape in a neutral, ac...
Why It's Moving
Broadcom charges toward record highs on AI momentum ahead of pivotal earnings.
- CEO Hock Tan previously revealed a $10B deal from a new major customer, supercharging the AI revenue forecast for fiscal 2026.
- Analysts anticipate adjusted EPS of $1.87 on $17.5B revenue, with commentary on AI chips set to drive post-earnings volatility.
- Options volume exploded to 2.4x the 5-day average, 59% calls, pricing in a 6.6% expected move around the Dec 12 expiration.
TSMC's November revenue surges 24.5% year-over-year, fueled by unrelenting AI chip demand from Nvidia and Big Tech.
- November revenue jumped 24.5% YoY to NT$343.61 billion, signaling explosive demand for AI accelerators even as it dipped 6.5% from October's peak.
- TSMC is ramping 2nm production and CoWoS packaging to meet overwhelming orders from Nvidia and hyperscalers, unlocking fresh capacity amid supply constraints.
- Q4 revenue outlook of $32.2B-$33.4B tops consensus, with gross margins eyed at 59-61%, reinforcing AI-driven profitability momentum.
Broadcom charges toward record highs on AI momentum ahead of pivotal earnings.
- CEO Hock Tan previously revealed a $10B deal from a new major customer, supercharging the AI revenue forecast for fiscal 2026.
- Analysts anticipate adjusted EPS of $1.87 on $17.5B revenue, with commentary on AI chips set to drive post-earnings volatility.
- Options volume exploded to 2.4x the 5-day average, 59% calls, pricing in a 6.6% expected move around the Dec 12 expiration.
TSMC's November revenue surges 24.5% year-over-year, fueled by unrelenting AI chip demand from Nvidia and Big Tech.
- November revenue jumped 24.5% YoY to NT$343.61 billion, signaling explosive demand for AI accelerators even as it dipped 6.5% from October's peak.
- TSMC is ramping 2nm production and CoWoS packaging to meet overwhelming orders from Nvidia and hyperscalers, unlocking fresh capacity amid supply constraints.
- Q4 revenue outlook of $32.2B-$33.4B tops consensus, with gross margins eyed at 59-61%, reinforcing AI-driven profitability momentum.
Which Baskets Do They Appear In?
AI Chip Stocks (AMD vs Nvidia) Gain on Partnership News
AMD's multi-billion dollar deal to supply OpenAI with next-generation GPUs marks a major shift in the AI hardware landscape. This theme focuses on AMD and the ecosystem of companies poised to benefit as it challenges Nvidia's dominance and fuels the expansion of AI infrastructure.
Published: October 7, 2025
Explore BasketAI Infrastructure Stocks (Nvidia's $100B Project)
Nvidia is investing up to $100 billion to build massive AI data centers for OpenAI, signaling a new era of large-scale AI infrastructure. This monumental project creates a significant opportunity for companies that provide the essential components and services for data center construction and operation.
Published: September 25, 2025
Explore BasketAI Chip Stocks: Intel-Nvidia Deal Risks & Rewards
Nvidia announced a $5 billion investment in Intel, marking a major collaboration between the two semiconductor rivals to develop new AI and data center technologies. This partnership could create a ripple effect, boosting companies that supply essential hardware and software for the expanding AI infrastructure ecosystem.
Published: September 21, 2025
Explore BasketWhich Baskets Do They Appear In?
AI Chip Stocks (AMD vs Nvidia) Gain on Partnership News
AMD's multi-billion dollar deal to supply OpenAI with next-generation GPUs marks a major shift in the AI hardware landscape. This theme focuses on AMD and the ecosystem of companies poised to benefit as it challenges Nvidia's dominance and fuels the expansion of AI infrastructure.
Published: October 7, 2025
Explore BasketAI Infrastructure Stocks (Nvidia's $100B Project)
Nvidia is investing up to $100 billion to build massive AI data centers for OpenAI, signaling a new era of large-scale AI infrastructure. This monumental project creates a significant opportunity for companies that provide the essential components and services for data center construction and operation.
Published: September 25, 2025
Explore BasketAI Chip Stocks: Intel-Nvidia Deal Risks & Rewards
Nvidia announced a $5 billion investment in Intel, marking a major collaboration between the two semiconductor rivals to develop new AI and data center technologies. This partnership could create a ripple effect, boosting companies that supply essential hardware and software for the expanding AI infrastructure ecosystem.
Published: September 21, 2025
Explore BasketInsider Confidence: What's Next for Stock Moves?
Tesla CEO Elon Musk's recent $1 billion stock purchase has boosted investor confidence, causing the share price to surge. This highlights a potential investment strategy focusing on companies where significant insider buying signals strong leadership conviction in future growth.
Published: September 16, 2025
Explore BasketAI Infrastructure Investment Overview | Dell Results
Dell's recent earnings revealed a massive surge in demand for its AI servers, beating expectations. This highlights a significant investment opportunity in the companies that supply the essential hardware and components powering the AI infrastructure boom.
Published: August 31, 2025
Explore BasketAI's Expanding Frontier: The Chip Supply Chain
Advanced Micro Devices (AMD) issued a strong revenue forecast, signaling intense demand for its AI chips. This surge creates a significant opportunity for the specialized companies that form the backbone of the semiconductor supply chain.
Published: August 6, 2025
Explore BasketInvestment Analysis
Broadcom
AVGO
Pros
- Broadcom benefits from extraordinary pricing power and operating margins above 60%, driven by leadership in networking chips and custom silicon for AI and hyperscale data centres.
- The company’s business model is less capital intensive than semiconductor manufacturers, allowing higher profitability without heavy ongoing equipment expenditures.
- Revenue and earnings have shown rapid growth recently, supported by strong demand for AI-related products and contributions from recent acquisitions like VMware.
Considerations
- Broadcom’s growth remains closely tied to cyclical hyperscaler capital expenditure cycles, introducing volatility if tech spending slows.
- Valuation metrics such as forward P/E and EV/EBITDA are elevated compared to sector peers, potentially limiting upside if growth moderates.
- A significant portion of revenue depends on a handful of large customers, increasing risk if any reduce orders or shift suppliers.
TSMC
TSM
Pros
- TSMC maintains a dominant technological lead in advanced semiconductor manufacturing, producing chips for virtually all leading AI and computing firms worldwide.
- The company’s massive and sustained capital expenditures ensure its leadership in cutting-edge process nodes like 2nm and 3nm, creating a high barrier to entry for rivals.
- Gross margins near 59% are industry-leading for a manufacturer, underpinned by efficient scale and pricing power with top-tier customers.
Considerations
- TSMC’s business requires enormous ongoing capital investment, with annual expenditures over $38 billion, creating heavy fixed costs and cash flow pressures.
- Geopolitical risks are heightened due to its primary manufacturing base in Taiwan, exposing investors to potential regional instability or trade disruptions.
- As a pure-play foundry, TSMC’s growth is directly tied to global semiconductor demand, making it susceptible to industry downturns and inventory corrections.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Broadcom vs Oracle
Broadcom vs Oracle: a stock comparison
Broadcom vs Mastercard
Broadcom Inc. vs Mastercard Inc.
Broadcom vs Meta
Broadcom vs Meta: a comparison of two tech leaders