ARM vs TSM: Arm Holdings and Taiwan Semiconductor Manufacturing compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Taiwan Semiconductor Manufacturing is the larger company, worth $2.37T, about 8.9 times Arm Holdings.
- Taiwan Semiconductor Manufacturing grew revenue faster over the last year (+33.9% vs +22.4%).
- Taiwan Semiconductor Manufacturing keeps more of each dollar of revenue as operating profit (45.7% vs 17.0%).
- On earnings, Taiwan Semiconductor Manufacturing is the cheaper stock (39.3x vs 292.8x).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | ARM | TSM |
|---|---|---|
| Market cap | $267.9B | $2.37T |
| Share price | $266.28 | $453.31 |
| Revenue (last fiscal year) | $4.9B | $2.89T |
| Free cash flow (last fiscal year) | $979M | $861.3B |
| Revenue growth, last year | +22.4% | +33.9% |
| Revenue growth per year, last 5 fiscal years | +16.2% | +21.2% |
| Operating margin | 17.0% | 45.7% |
| Net margin | 20.2% | 40.0% |
| Return on equity | 12.1% | 27.3% |
| P/E (trailing) | 292.8x | 39.3x |
| Price / free cash flow | 273.6x | 2.17x |
| EV / EBITDA | 176.1x | 25.0x |
| FCF growth the price implies | 40.7% | — |
| Dividend yield | — | 0.83% |
| Debt / equity | 0.30x | 0.57x |
| Fundamental grade | C | B |
| Superinvestors holding it | 4 | 28 |
| Insider purchases, last 12 months | 0 | 10 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Arm Holdings
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $2.7B | $424M | 23.4% |
| 2023 | $2.7B | $675M | 25.0% |
| 2024 | $3.2B | $998M | 3.4% |
| 2025 | $4.0B | $178M | 20.7% |
| 2026 | $4.9B | $979M | 18.3% |
Taiwan Semiconductor Manufacturing
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2020 | $1.34T | $305.9B | 42.3% |
| 2021 | $1.59T | $263.9B | 40.9% |
| 2022 | $2.26T | $521.0B | 49.5% |
| 2023 | $2.16T | $286.6B | 42.6% |
| 2024 | $2.89T | $861.3B | 45.7% |
Where the revenue comes from
Arm Holdings · by products, 2026
Royalty$2.6B53%
License and Other Revenue$2.3B47%
Taiwan Semiconductor Manufacturing · by products, 2025
Wafer$3.27T86%
Others$536.5B14%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open ARM in InvestinglyQuestions
Which is bigger, Arm Holdings or Taiwan Semiconductor Manufacturing?
Taiwan Semiconductor Manufacturing (TSM), at $2.37T against $267.9B.
Is ARM or TSM cheaper?
By trailing P/E, Taiwan Semiconductor Manufacturing (39.3x) is cheaper than Arm Holdings (292.8x). A lower multiple can also mean the market expects less growth.
Which grows faster, ARM or TSM?
Taiwan Semiconductor Manufacturing: revenue grew +33.9% over the last year, against +22.4%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.