Taiwan Semiconductor Mfg. Co. Ltd. vs Materials Select Sector SPDR Fund — how do they compare? Taiwan Semiconductor Mfg. Co. Ltd. trades at $432 (market cap $1.93T), while Materials Select Sector SPDR Fund trades at $53.45. The key difference: Taiwan Semiconductor Mfg. Co. Ltd. pays a 0.9% dividend while Materials Select Sector SPDR Fund pays none, and Materials Select Sector SPDR Fund is trading nearer its 52-week high, Taiwan Semiconductor Mfg. Co. Ltd. nearer its low. Which is the better fit depends on your goals.
| TSM | XLB | |
|---|---|---|
Market Cap | $1.93T | — |
Sector | Technology | — |
52-Week High | $477.57 | $53.62 |
52-Week Low | $227.33 | $42.23 |
Enterprise Value | $1.85T | — |
Dividend Yield | 0.9% | — |
Signals from Pluang's Aura AI — not financial advice
TSM trades at $418.47, down 0.37% on the day, with a bullish technical signal from moving averages. The stock has consistently beaten earnings estimates, with Q2 2026 EPS of $4.31 surpassing the $3.87 forecast. Revenue growth is robust, with July 2026 sales up 44.7% year-over-year, driven by strong AI demand. Valuation ratios are elevated, with a P/E of 31.86 and P/S of 15.91, reflecting high growth expectations. Analysts maintain a strong buy consensus with a $545.67 price target.
The outlook for TSM is positive, supported by accelerating revenue growth, expanding profit margins, and strategic investments in AI and joint ventures. Key risks include high valuation multiples, competitive pressures, and geopolitical factors. The stock offers significant upside to the consensus target, but investors should monitor execution on capacity expansion and demand sustainability.
No Aura AI signal available yet.
Trailing returns across standard periods
Latest headlines on both assets
Taiwan Semiconductor Manufacturing Company, or TSMC, is the world's largest dedicated chip foundry, with over 57% market share in 2021 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.
Read more on TSM →In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: chemicals; metals and mining; paper and forest products; containers and packaging; and construction materials. The fund is non-diversified.
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