MSFT vs TSM Stock Comparison
Microsoft Corporation vs Taiwan Semiconductor Manufacturing Company Limited
MSFT leads
MSFT leads by 4 AIQ points, primarily on Momentum and Value, but the lead has narrowed from 10 points over 30 sessions. Wall Street currently favors TSM on target upside.
Fragile: 3 of 6 evidence groups support MSFT, its lead is narrowing, and its current signal state is conflicted.
Microsoft Corporation
Taiwan Semiconductor Manufacturing Company Limited
The Algovestiq AIQ Score currently favors MSFT over TSM, 65 versus 61 as of Sep 2, 2026. MSFT's advantage is driven primarily by stronger momentum and value, while TSM holds the stronger quality profile. MSFT also shows the stronger technical structure relative to its 50-day moving average, though analyst target upside currently favors TSM. 3 of 6 covered evidence groups favor MSFT today, and the comparison is rated Fragile on stability: the AIQ gap is narrow at 4 points. MSFT lead: Weakening — the AIQ differential moved from 10 to 4 points over 30 sessions.
Compare Microsoft Corporation and Taiwan Semiconductor Manufacturing Company Limited across the Algovestiq AIQ Score, valuation, quality, momentum, risk, technicals and analyst expectations.
AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Momentum25%60 vs 45MSFT +15
- Quality30%89 vs 96TSM +7
- Value30%45 vs 38MSFT +7
- Risk Resilience15%67 vs 67Even
3 of 6 evidence groups favor MSFT. MSFT’s edge is concentrated in momentum and value; TSM keeps a meaningful quality edge.
What changed since the last close
Latest scored session 2026-09-01, compared against the prior scored session 2026-08-31.
No factor moved materially.
No new signals fired.
No factor moved materially.
No new signals fired.
MSFT's lead was unchanged in the latest snapshot.
Deeper signal detail for each name lives on its own signals page — MSFT and TSM both carry a full feed there.
The central trade-off
MSFT (Microsoft Corporation): the stronger current systematic profile, led by momentum and value.
TSM (Taiwan Semiconductor Manufacturing Company Limited): the counter-case, on quality, fundamentals, analyst expectations.
The AIQ Score and Wall Street therefore point in different directions on this pair.
Which one fits your objective
The same two names rank differently depending on what you are optimizing for. All six reads are shown at once — none of them is hidden behind a toggle.
Balanced
MSFTMSFT on the overall AIQ Score, which weights Quality and Value at 30% each.
Growth
TSMTSM on combined revenue and EPS growth.
Value
MSFTMSFT on the peer-relative Value factor, by 7 points.
Momentum
MSFTMSFT on the Momentum factor, by 15 points.
Lower downside
MSFTMSFT carries the lower 1-month annualized volatility.
Analyst upside
TSMTSM on implied upside to the consensus price target.
AIQ vs Wall Street
The model and the Street disagree here: AIQ favors MSFT, analyst targets favor TSM. That disagreement is the most useful thing on this page.
| Measure | MSFT | TSM | Note |
|---|---|---|---|
| Implied upside to target | +10% | +40.3% | TSM has more room |
| Target dispersion | +53.2% | +38% | Lower is tighter analyst agreement |
| Consensus | Buy | Buy | Context, not a primary driver |
| Analysts covering | 23 | 6 | Higher coverage generally improves confidence |
The two are measuring different things. The AIQ Score reads current fundamentals, valuation, trend and risk; analyst targets price forward expectations. A divergence of this kind is either a contrarian opportunity or a sign the model is missing something already priced in — it is worth resolving before acting on either.
Analyst targets are expectations, not predictions. Dispersion matters as much as the midpoint.
AIQ Agreement Matrix
3 of 6 covered evidence groups favor MSFT. A wide gap backed by one group is a weaker case than a narrow gap backed by five.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | MSFT | 65 vs 61 |
| Fundamentals | TSMon balance | revenue growth 8.6% vs 12%; EPS growth 12.4% vs 22.1%; ROE 33.2% vs 39.3%; gross margin 67.9% vs 64.2%; operating margin 46.8% vs 56% — TSM takes 4 of 5 decided legs, not all of them |
| Valuation | MSFT | Value 45 vs 38 |
| Technicals | MSFT | Price vs 50-day 14.5% vs -2.3%; vs 200-day 17.6% vs 12.2% |
| Risk Resilience | Even | Risk Resilience 67 vs 67 |
| Analyst expectations | TSM | Target upside 10% vs 40.3% |
✓ agrees with the overall verdict · ✕ points the other way. Groups marked “not covered” lack data on one or both of MSFT and TSM and are excluded from the count.
AIQ Decision Stability
The conclusion is sensitive to small changes. Treat the lead as provisional and watch the flip conditions below.
- The AIQ gap is narrow at 4 points. (argues the conclusion is provisional)
- Only 3 of 6 covered evidence groups agree. (argues the conclusion is provisional)
- The leader's advantage has been narrowing. (argues the conclusion is provisional)
- The leader is throwing conflicting signals. (argues the conclusion is provisional)
Stability combines the score gap, how broadly the evidence agrees, how steady the lead has been across daily snapshots, the current signal state on both names, and analyst dispersion on MSFT.
How the comparison changed
120 daily snapshots · Apr 20 – Sep 1MSFT lead: Weakening — the AIQ differential moved from 10 to 4 points over 30 sessions.
- Today
- MSFT +4
- 65 vs 61
- 7 sessions ago
- TSM +3
- 64 vs 67
- 30 sessions ago
- MSFT +10
- 72 vs 62
- 90 sessions ago
- TSM +12
- 51 vs 63
The lead changed hands 10 times in this window, most recently on Aug 28 when MSFT moved ahead of TSM.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
3 bullish / 1 bearish, conflicted
- Golden Cross Active — bullish, trend, long horizon (0.47%)
- EMA Ribbon Expansion Bullish — bullish, trend, medium horizon
- Uptrend Structure Active — bullish, trend, long horizon
3 bullish / 0 bearish / 1 neutral
- Golden Cross Active — bullish, trend, long horizon (14.14%)
- EMA Ribbon Expansion Bullish — bullish, trend, medium horizon
- EMA Ribbon Compression — neutral, trend, medium horizon
MSFT leads the comparison while carrying a conflicted signal state, which is one reason the stability rating is not higher.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price -0.98%, AIQ 0 points).
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price -0.26%, AIQ 0 points).
What would flip this result
A state, not a forecast. These are the specific, observable changes that would reverse the verdict — not a price prediction.
- 1TSM closes the Momentum gap — currently 15 points behind, the largest single contributor to MSFT's edge.
- 2TSM's EMA Ribbon Compression turns directional — it is neutral today and would confirm a change in trend.
- 3MSFT's conflicting signal state resolves bearish — it currently carries 3 bullish and 1 bearish rules at once.
- 4The narrowing continues — the lead has already given back 6 points over 30 sessions, and a further 4-point move would eliminate MSFT's advantage entirely.
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Fundamentals
TSM leads on balance| Metric | MSFT | TSM |
|---|---|---|
| Revenue growth (YoY) | 8.6% | 12% |
| EPS growth (YoY) | 12.4% | 22.1% |
| Gross margin | 67.9% | 64.2% |
| Operating margin | 46.8% | 56% |
| Return on equity | 33.2% | 39.3% |
| Debt to equity | 0.29 | 0.15 |
Technicals
MSFT has the stronger structure| Metric | MSFT | TSM |
|---|---|---|
| RSI (14) | 52.2 | 45.8 |
| ADX (14) | 37.9 | 8.2 |
| Price vs 50-day | 14.5% | -2.3% |
| Price vs 200-day | 17.6% | 12.2% |
| Volatility (1M, annualized) | 21.7% | 26.1% |
Risk
Split| Metric | MSFT | TSM |
|---|---|---|
| Beta | 0.96 | 2.21 |
| Sharpe ratio | 0.02 | 1.48 |
| Sortino ratio | 0.04 | 2.4 |
| Max drawdown | -34.9% | -21.6% |
| Current drawdown | -6.4% | -13% |
| Annualized volatility | 32.5% | 40.6% |
| Value at risk (95%) | -2.8% | -4.1% |
Straight answers
Each answer is regenerated from the current snapshot, not written once and left to age.
Which is better, MSFT or TSM?
On the Algovestiq AIQ Score, MSFT is the stronger of the two as of Sep 2, 2026, scoring 65 against TSM's 61. The edge comes from momentum and value. TSM is not without a case — it holds the better quality profile, which matters more if that is the objective you are optimizing for. This is a systematic score, not a recommendation: it ranks the two on the same evidence, it does not know your holding period or tax position.
Is MSFT or TSM the better buy right now?
MSFT carries the stronger systematic profile as of Sep 2, 2026, and the comparison is rated Fragile — 3 of 6 covered evidence groups agree. A Fragile rating means the conclusion is sensitive: the AIQ gap is narrow at 4 points. Treat the lead as provisional.
Why does the AIQ Score favor MSFT over TSM?
The composite weights Quality at 30%, Value at 30%, Momentum at 25% and Risk Resilience at 15%. MSFT leads Momentum by 15 points; TSM leads Quality by 7 points; MSFT leads Value by 7 points. Where the two split, the factor with the larger weight carries the result.
Which has more analyst upside, MSFT or TSM?
Analyst price targets imply +10% upside for MSFT and +40.3% for TSM, so the Street currently favors TSM. That points the opposite way to the AIQ Score, which favors MSFT. The two are measuring different things: the model reads current fundamentals, valuation, trend and risk; the Street is pricing forward expectations. A divergence of this kind is either a contrarian opportunity or a sign the model is missing something the analysts have already priced — it is the single most useful row on this page to investigate. Analyst targets are expectations, not predictions, and dispersion matters as much as the midpoint.
Which is better value, MSFT or TSM?
MSFT is the better-valued of the two on the peer-relative Value factor. MSFT on the peer-relative Value factor, by 7 points. The Value factor reads valuation relative to sector peers and to the company's own fundamental quality, so it is not the same as simply having the lower multiple.
Which has stronger growth, MSFT or TSM?
TSM on combined revenue and EPS growth. Growth here is measured on reported revenue and earnings, not on forward estimates — it describes what the businesses have delivered, not what the Street expects next.
Which has stronger momentum, MSFT or TSM?
MSFT on the Momentum factor, by 15 points. Momentum carries 25% of the AIQ composite. It has documented persistence over three- to twelve-month horizons, which makes it a timing input rather than a reason to hold something indefinitely.
Which is riskier, MSFT or TSM?
MSFT is the more resilient of the two, so the other name carries the higher downside risk. MSFT carries the lower 1-month annualized volatility. The Risk Resilience factor weights 15% of the composite; position sizing usually responds to it more usefully than the buy/avoid decision does.
Is MSFT more profitable than TSM?
The profitability evidence is mixed: gross margin 67.9% vs 64.2%; operating margin 46.8% vs 56%; roe 33.2% vs 39.3%. MSFT leads on one measure and TSM on two measures, and there is no single profitability composite that resolves the split — which of the two reads as "more profitable" depends on whether you weight pricing power or operating leverage.
Is MSFT's lead over TSM getting stronger or weaker?
MSFT lead: Weakening — the AIQ differential moved from 10 to 4 points over 30 sessions. This is measured from 120 daily comparison snapshots between 2026-04-20 and 2026-09-01. The lead has changed hands 10 times in that window, most recently on 2026-08-28, when MSFT moved ahead of TSM.
What would change the MSFT vs TSM verdict?
The result is a state, not a forecast, so it changes when the underlying evidence changes. Concretely: TSM closes the Momentum gap — currently 15 points behind, the largest single contributor to MSFT's edge; TSM's EMA Ribbon Compression turns directional — it is neutral today and would confirm a change in trend; MSFT's conflicting signal state resolves bearish — it currently carries 3 bullish and 1 bearish rules at once; the narrowing continues — the lead has already given back 6 points over 30 sessions, and a further 4-point move would eliminate MSFT's advantage entirely.
What do the current signals say about MSFT and TSM?
MSFT: 3 bullish / 1 bearish, conflicted. TSM: 3 bullish / 0 bearish / 1 neutral. A conflicted state means bullish and bearish rules are active on the same name at once — the technical evidence is not pointing one way, and a decision taken on it carries more timing risk. The most decision-relevant rule on MSFT is Golden Cross Active (bullish, long horizon). On TSM it is Golden Cross Active (bullish, long horizon).
Compare MSFT and TSM with others
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality (30%), Value (30%), Momentum (25%) and Risk (15%). Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.