MSFT vs TSM: Microsoft 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.
- Microsoft is the larger company, worth $4.14T, about 1.7 times Taiwan Semiconductor Manufacturing.
- Taiwan Semiconductor Manufacturing grew revenue faster over the last year (+33.9% vs +17.8%).
- Microsoft keeps more of each dollar of revenue as operating profit (46.8% vs 45.7%).
- On earnings, Microsoft is the cheaper stock (33.2x vs 39.3x).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | MSFT | TSM |
|---|---|---|
| Market cap | $4.14T | $2.37T |
| Share price | $535.07 | $453.31 |
| Revenue (last fiscal year) | $331.8B | $2.89T |
| Free cash flow (last fiscal year) | $67.0B | $861.3B |
| Revenue growth, last year | +17.8% | +33.9% |
| Revenue growth per year, last 5 fiscal years | +13.7% | +21.2% |
| Operating margin | 46.8% | 45.7% |
| Net margin | 40.3% | 40.0% |
| Return on equity | 30.2% | 27.3% |
| P/E (trailing) | 33.2x | 39.3x |
| Price / free cash flow | 57.8x | 2.17x |
| EV / EBITDA | 19.1x | 25.0x |
| FCF growth the price implies | 19.8% | — |
| Dividend yield | 0.66% | 0.83% |
| Debt / equity | 0.71x | 0.57x |
| Fundamental grade | B | B |
| Superinvestors holding it | 33 | 28 |
| Insider purchases, last 12 months | 10 | 10 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Microsoft
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $198.3B | $65.1B | 42.1% |
| 2023 | $211.9B | $59.5B | 41.8% |
| 2024 | $245.1B | $74.1B | 44.6% |
| 2025 | $281.7B | $71.6B | 45.6% |
| 2026 | $331.8B | $67.0B | 46.8% |
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
Microsoft · by segments, 2026
Productivity and Business Processes$140.0B42%
Intelligent Cloud$137.8B42%
More Personal Computing$54.1B16%
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 MSFT in InvestinglyQuestions
Which is bigger, Microsoft or Taiwan Semiconductor Manufacturing?
Microsoft (MSFT), at $4.14T against $2.37T.
Is MSFT or TSM cheaper?
By trailing P/E, Microsoft (33.2x) is cheaper than Taiwan Semiconductor Manufacturing (39.3x). A lower multiple can also mean the market expects less growth.
Which grows faster, MSFT or TSM?
Taiwan Semiconductor Manufacturing: revenue grew +33.9% over the last year, against +17.8%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.