TSM vs. AVGO: Which is a Better Semiconductor Stock?

1 hour ago 3

Vandita Jadeja

Wed, March 25, 2026 astatine 11:08 AM CDT 5 min read

Taiwan Semiconductor Manufacturing (TSM) reported Q4 2025 gross of $33.73B, up 20.4% year-over-year, with 77% of wafer gross from precocious 7nm and beneath nodes, portion committing $52B-$56B successful 2026 capex to service 534 customers crossed AI demand. Broadcom (AVGO) posted Q1 FY2026 AI spot gross of $8.4B, up 106% year-over-year, with Semiconductor Solutions gross of $12.52B (65% of total) increasing 52% year-over-year, and deployed $7.8B successful Q1 stock repurchases portion authorizing a caller $10B buyback program.
TSMC’s foundry standard captures simultaneous AI request from each large spot decorator including Broadcom, portion Broadcom’s asset-light customized accelerator absorption and unreality supplier attraction present antithetic leverage connected the aforesaid AI infrastructure wave.
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Chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM) reported its Q4 2025 results successful January, portion Broadcom (NASDAQ:AVGO) filed its Q1 FY2026 results successful March. Both are riding the aforesaid AI question from structurally antithetic positions: 1 builds fabs, the different designs chips and sells software.

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TSMC's 4th demonstrated foundry leverage astatine scale. Revenue reached $33.73 billion, up 20.4% year-over-year, with gross borderline of 62.3% exceeding the company's ain guidance scope of 59% to 61%.

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Advanced nodes drove the result. Chips built connected 7nm processes and beneath accounted for 77% of wafer revenue, with 3nm unsocial contributing 28%, the nodes apical tech companies trust connected for their astir demanding silicon.

CEO C.C. Wei confirmed helium personally verified request with unreality providers earlier committing to a 2026 superior expenditure fund of $52 cardinal to $56 billion, signaling condemnation backed by lawsuit conversations.

Broadcom's 4th showed a antithetic benignant of acceleration. AI spot gross deed $8.40 cardinal successful Q1 FY2026, up 106% year-over-year and supra the company's ain forecast. Q1 AI gross of $8.4 cardinal grew 106% year-over-year, supra the forecast, driven by robust request for customized AI accelerators and AI networking.

The Semiconductor Solutions segment, which includes customized accelerators and Ethernet AI switches, grew 52% year-over-year to $12.52 cardinal and present represents 65% of full revenue.

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