In the fast-evolving semiconductor industry, Taiwan Semiconductor Manufacturing Company Limited (TSM) and Marvell Technology, Inc. (MRVL) stand out as key players driving innovation and market growth. TSM excels in wafer fabrication and integrated circuits, while Marvell focuses on advanced signal processing and storage solutions. This comparison explores their strategies, market positions, and growth potential to help you decide which stock deserves a place in your portfolio. Let’s uncover which company presents the most compelling investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between Taiwan Semiconductor Manufacturing Company Limited and Marvell Technology, Inc. by providing an overview of these two companies and their main differences.
Taiwan Semiconductor Manufacturing Company Limited Overview
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor manufacturer specializing in integrated circuits and related devices. Founded in 1987 and headquartered in Hsinchu City, Taiwan, TSMC provides advanced wafer fabrication processes and supports diverse applications such as high-performance computing, smartphones, and automotive electronics. It maintains a strong global presence with operations spanning multiple continents.
Marvell Technology, Inc. Overview
Marvell Technology, Inc. (MRVL), founded in 1995 and based in Wilmington, Delaware, designs and sells analog, mixed-signal, and digital signal processing integrated circuits. Its portfolio includes Ethernet solutions, storage controllers, and server connectivity products. Marvell operates internationally across Asia and the United States, focusing on networking, data storage, and processing technologies, serving various technology markets.
Key similarities and differences
Both TSM and Marvell operate within the semiconductor industry and serve global markets with advanced chip technologies. TSMC primarily focuses on wafer fabrication and manufacturing services, whereas Marvell emphasizes integrated circuit design and product development in networking and storage. TSMC’s scale and market cap vastly exceed Marvell’s, reflecting its role as a major foundry, while Marvell targets specialized semiconductor solutions.
Income Statement Comparison
The table below compares key income statement metrics for Taiwan Semiconductor Manufacturing Company Limited and Marvell Technology, Inc. for their most recent fiscal years.
| Metric | Taiwan Semiconductor Manufacturing Company Limited | Marvell Technology, Inc. |
|---|---|---|
| Market Cap | 1.70T TWD | 70.0B USD |
| Revenue | 2.89T TWD | 5.77B USD |
| EBITDA | 1.98T TWD | 652M USD |
| EBIT | 1.32T TWD | -705M USD |
| Net Income | 1.16T TWD | -885M USD |
| EPS | 223.4 TWD | -1.02 USD |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Taiwan Semiconductor Manufacturing Company Limited
TSMC has shown robust revenue growth from 2020 to 2024, increasing from 1.34T TWD to 2.89T TWD, with net income rising from 510B TWD to 1.16T TWD. Margins remain strong and stable, with a gross margin above 56% and a net margin around 40%. The 2024 performance was notably favorable, showing a 33.9% revenue increase and a slight 1.58% net margin growth, reflecting sustained operational efficiency.
Marvell Technology, Inc.
Marvell’s revenue grew from $2.97B in 2021 to $5.77B in 2025, but net income remained negative, with a loss of $885M in 2025. Gross margin is relatively healthy at 41.3%, yet the EBIT and net margins are negative, indicating profitability challenges. The 2025 results show modest revenue growth of 4.7% and a slight improvement in net margin, although overall profitability remains unfavorable.
Which one has the stronger fundamentals?
TSMC exhibits stronger fundamentals, with predominantly favorable income statement metrics including high and improving margins, consistent revenue, and net income growth. In contrast, Marvell faces profitability pressures, reflected in negative EBIT and net margins despite revenue growth. The overall income statement evaluation favors TSMC’s financial health and operational performance over Marvell’s current challenges.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Marvell Technology, Inc. (MRVL) based on the most recent fiscal year data available.
| Ratios | TSM (2024) | MRVL (2025) |
|---|---|---|
| ROE | 27.29% | -6.59% |
| ROIC | 20.00% | -3.88% |
| P/E | 29.04 | -110.37 |
| P/B | 7.92 | 7.27 |
| Current Ratio | 2.36 | 1.54 |
| Quick Ratio | 2.14 | 1.03 |
| D/E (Debt-to-Equity) | 0.25 | 0.32 |
| Debt-to-Assets | 15.65% | 21.50% |
| Interest Coverage | 125.96 | -3.80 |
| Asset Turnover | 0.43 | 0.29 |
| Fixed Asset Turnover | 0.88 | 5.56 |
| Payout Ratio | 31.34% | -23.45% |
| Dividend Yield | 1.08% | 0.21% |
Interpretation of the Ratios
Taiwan Semiconductor Manufacturing Company Limited
TSM demonstrates strong financial health with favorable net margin (40.02%), ROE (27.29%), and ROIC (20.0%), reflecting efficient profitability and capital use. However, elevated P/E (29.04) and P/B (7.92) ratios suggest valuation concerns. Its dividend yield at 1.08% is modest, supported by stable payouts and balanced shareholder returns without excessive risk.
Marvell Technology, Inc.
MRVL displays weak profitability ratios, including a negative net margin (-15.35%) and ROE (-6.59%), indicating operational challenges. Although leverage metrics like debt-to-assets (21.5%) remain manageable, the interest coverage is negative (-3.72), raising solvency worries. Dividend yield is low at 0.21%, reflecting a cautious approach amid ongoing investment and restructuring.
Which one has the best ratios?
TSM holds a more favorable ratio profile overall, with a majority of metrics indicating financial strength and profitability. In contrast, MRVL’s ratios reveal operational and financial stress, marked by negative earnings and weaker coverage. Thus, TSM’s ratios are comparatively superior in terms of stability and performance.
Strategic Positioning
This section compares the strategic positioning of Taiwan Semiconductor Manufacturing Company Limited (TSM) and Marvell Technology, Inc. (MRVL) regarding market position, key segments, and exposure to technological disruption:
Taiwan Semiconductor Manufacturing Company Limited
- Leading global semiconductor foundry with strong competitive pressure from industry peers.
- Focuses on wafer fabrication, integrated circuits, and diverse semiconductor processes for multiple tech applications.
- Invests in advanced manufacturing technology and supports engineering services, mitigating disruption risks.
Marvell Technology, Inc.
- Mid-sized semiconductor company facing competitive pressure in diverse technology niches.
- Concentrated on analog, mixed-signal ICs with emphasis on Ethernet, storage, and networking solutions.
- Develops innovative processors and storage controllers, exposed to rapid tech shifts in data and networking.
TSM vs MRVL Positioning
TSM pursues a diversified approach with broad semiconductor manufacturing capabilities across multiple high-tech segments, whereas MRVL maintains a more concentrated focus on analog and digital signal processing markets. TSM’s size and range provide scale advantages; MRVL’s niche focus entails higher exposure to specific market fluctuations.
Which has the best competitive advantage?
TSM demonstrates a slightly favorable moat with positive value creation despite declining ROIC, indicating sustainable competitive advantage. MRVL shows a very unfavorable moat with negative value creation and steeply declining ROIC, reflecting challenges in maintaining competitive advantage.
Stock Comparison
The stock prices of Taiwan Semiconductor Manufacturing Company Limited (TSM) and Marvell Technology, Inc. (MRVL) have shown distinct movements over the past year, with TSM experiencing significant growth and MRVL displaying more moderate fluctuations amid varying trading volumes.
Trend Analysis
Taiwan Semiconductor Manufacturing Company Limited’s stock has shown a strong bullish trend over the past 12 months, with a 152.54% price increase and accelerating momentum. The price ranged from a low of 127.7 to a high of 327.11, with a high volatility of 51.25.
Marvell Technology, Inc. recorded a bullish trend overall with a 20.17% price increase during the same period, but its growth has decelerated recently, showing a -13.37% decline over the last two and a half months and lower volatility at 5.54.
Comparing both, Taiwan Semiconductor Manufacturing Company Limited delivered significantly higher market performance than Marvell Technology, Inc., with a much stronger price appreciation and acceleration in trend.
Target Prices
Analyst consensus target prices indicate a positive outlook for both Taiwan Semiconductor Manufacturing Company Limited and Marvell Technology, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Taiwan Semiconductor Manufacturing Company Limited | 400 | 330 | 361.25 |
| Marvell Technology, Inc. | 156 | 80 | 117 |
The target consensus for TSM at 361.25 USD is above its current price of 327.11 USD, suggesting upside potential. Similarly, MRVL’s consensus target of 117 USD exceeds its current price of 81.21 USD, indicating expected growth by analysts.
Analyst Opinions Comparison
This section compares the analysts’ ratings and grades for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Marvell Technology, Inc. (MRVL):
Rating Comparison
TSM Rating
- Rating: A- indicating a very favorable overall evaluation.
- Discounted Cash Flow Score: 5, considered very favorable, showing strong valuation prospects.
- ROE Score: 5, very favorable, demonstrating excellent profit generation from equity.
- ROA Score: 5, very favorable, showing highly effective asset utilization.
- Debt To Equity Score: 3, moderate, indicating average financial risk exposure.
- Overall Score: 4, favorable overall financial standing.
MRVL Rating
- Rating: B+ also indicating a very favorable overall evaluation.
- Discounted Cash Flow Score: 3, moderate rating reflecting average valuation outlook.
- ROE Score: 4, favorable, indicating good efficiency in generating shareholder returns.
- ROA Score: 5, very favorable, indicating excellent use of assets to generate earnings.
- Debt To Equity Score: 2, moderate, showing somewhat higher financial risk relative to equity.
- Overall Score: 3, moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, TSM is better rated overall with an A- rating and superior scores in discounted cash flow, return on equity, and overall score. MRVL holds moderate scores but matches TSM in return on assets.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
TSM Scores
- Altman Z-Score: 2.94, indicating a grey zone risk level with moderate bankruptcy chance.
- Piotroski Score: 8, classified as very strong financial health by Piotroski standards.
MRVL Scores
- Altman Z-Score: 6.76, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health by Piotroski standards.
Which company has the best scores?
MRVL has a higher Altman Z-Score, placing it in the safe zone, while TSM is in the grey zone. TSM has a slightly better Piotroski Score, indicating very strong financial health compared to MRVL’s strong rating.
Grades Comparison
Here is a detailed comparison of recent grades assigned to Taiwan Semiconductor Manufacturing Company Limited and Marvell Technology, Inc.:
Taiwan Semiconductor Manufacturing Company Limited Grades
This table summarizes the latest grades from recognized grading companies for TSM:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Bernstein | Maintain | Outperform | 2025-12-08 |
| Needham | Maintain | Buy | 2025-10-27 |
| Barclays | Maintain | Overweight | 2025-10-17 |
| Needham | Maintain | Buy | 2025-10-16 |
| Susquehanna | Maintain | Positive | 2025-10-10 |
| Barclays | Maintain | Overweight | 2025-10-09 |
| Barclays | Maintain | Overweight | 2025-09-16 |
| Needham | Maintain | Buy | 2025-07-17 |
| Susquehanna | Maintain | Positive | 2025-07-14 |
| Needham | Maintain | Buy | 2025-07-01 |
The grades for Taiwan Semiconductor Manufacturing Company Limited consistently show positive sentiment, with no downgrades or negative changes.
Marvell Technology, Inc. Grades
This table presents recent grades from verified grading firms for MRVL:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Rosenblatt | Maintain | Buy | 2026-01-07 |
| Melius Research | Upgrade | Buy | 2026-01-05 |
| Benchmark | Downgrade | Hold | 2025-12-08 |
| B. Riley Securities | Maintain | Buy | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-12-03 |
| Susquehanna | Maintain | Positive | 2025-12-03 |
| Benchmark | Maintain | Buy | 2025-12-03 |
| Oppenheimer | Maintain | Outperform | 2025-12-03 |
| Stifel | Maintain | Buy | 2025-12-03 |
| Rosenblatt | Maintain | Buy | 2025-12-03 |
The grade trend for Marvell Technology, Inc. is generally positive, though it includes a recent downgrade from Benchmark, indicating some mixed analyst views.
Which company has the best grades?
Both companies have a “Buy” consensus, but Taiwan Semiconductor Manufacturing Company Limited shows a more uniform and stable set of positive grades without downgrades. Marvell Technology, Inc. has a broader range of ratings and one recent downgrade, which may indicate slightly higher analyst uncertainty. This difference could influence investors’ perception of stability versus potential variability in outlook.
Strengths and Weaknesses
Below is a comparative table highlighting the key strengths and weaknesses of Taiwan Semiconductor Manufacturing Company Limited (TSM) and Marvell Technology, Inc. (MRVL) based on the most recent data.
| Criterion | Taiwan Semiconductor Manufacturing Company Limited (TSM) | Marvell Technology, Inc. (MRVL) |
|---|---|---|
| Diversification | Strong focus on wafer manufacturing with steady revenue in other product lines; limited diversification outside core expertise | More diversified across segments: Data Center, Carrier Infrastructure, Automotive, Enterprise Networking, Consumer |
| Profitability | High net margin (40.02%), ROIC (20%), and ROE (27.29%); creating value but with declining ROIC trend | Negative net margin (-15.35%), ROIC (-3.88%), and ROE (-6.59%); shedding value with sharply declining profitability |
| Innovation | Leading-edge semiconductor manufacturing technology; strong R&D investment | Innovation in networking and data center chips but profitability challenges hint at execution risks |
| Global presence | Global leader in semiconductor foundry market with significant market share | Global presence in multiple tech sectors but smaller scale compared to TSM |
| Market Share | Dominant market share in wafer fabrication | Growing presence in key markets but lower overall market share compared to TSM |
Key takeaways: TSM demonstrates robust profitability and a dominant market position, though its profitability is slightly declining. MRVL is more diversified but faces significant profitability challenges and value destruction risks, requiring cautious consideration before investment.
Risk Analysis
Below is a comparative table highlighting key risks for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Marvell Technology, Inc. (MRVL) as of the most recent fiscal years:
| Metric | Taiwan Semiconductor Manufacturing Company Limited (TSM) | Marvell Technology, Inc. (MRVL) |
|---|---|---|
| Market Risk | Moderate (beta 1.27; semiconductors cyclical industry) | High (beta 1.95; volatile sector) |
| Debt level | Low (debt-to-equity 0.25; strong interest coverage) | Moderate (debt-to-equity 0.32; negative interest coverage) |
| Regulatory Risk | Moderate (exposure to Taiwan/China geopolitical tensions) | Moderate (US and international regulations) |
| Operational Risk | Moderate (complex fabrication processes; supply chain sensitive) | Moderate (diverse product portfolio; supply chain exposure) |
| Environmental Risk | Moderate (energy-intensive manufacturing) | Moderate (manufacturing impact) |
| Geopolitical Risk | High (Taiwan-China tensions create high uncertainty) | Moderate (global operations but US-based) |
The most impactful and likely risks for TSM are geopolitical tensions involving Taiwan and China, which could disrupt supply chains and production. Marvell faces higher market volatility and financial risk due to negative profitability and interest coverage, increasing vulnerability. Both companies have moderate regulatory and environmental risks inherent to the semiconductor industry.
Which Stock to Choose?
Taiwan Semiconductor Manufacturing Company Limited (TSM) shows strong income growth with a 33.9% revenue increase in 2024 and consistently favorable profitability ratios, including a 40.02% net margin and 27.29% ROE. Its debt levels are low and well-managed, supported by a very favorable overall rating of A- and a slightly favorable MOAT indicating value creation despite declining profitability.
Marvell Technology, Inc. (MRVL) exhibits modest revenue growth of 4.7% in 2025 but faces challenges with negative profitability ratios, such as a -15.35% net margin and -6.59% ROE, alongside high debt relative to earnings. Its rating is moderately favorable at B+ with a very unfavorable MOAT reflecting value destruction and declining returns on invested capital.
For investors with a risk-averse or quality investing profile, TSM may appear more favorable due to its robust profitability, strong financial ratios, and value-creating moat, whereas more risk-tolerant investors focused on potential turnaround opportunities might find MRVL’s current valuation and growth prospects worth monitoring despite its financial weaknesses.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Taiwan Semiconductor Manufacturing Company Limited and Marvell Technology, Inc. to enhance your investment decisions:
