SMCI vs TSM: Correlation
Supermicro (SMCI) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) show a moderate relationship: their 3-year correlation of weekly returns is 0.46.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMCI and TSM?
Across a 3-year window, the weekly returns of SMCI and TSM correlate at 0.46, moderate. The relationship has been stable: the 1-year correlation (0.41) sits close to the 3-year figure. Stretching to 5 years gives 0.42, with an annualized covariance of 1734.4 %².
Within SMCI's tracked universe of 29 assets, TSM comes in at #12 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TSM outperformed by 94.6 percentage points (-14.1% for SMCI against +80.5% for TSM). Note the risk asymmetry: SMCI runs 3.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
SMCI vs TSM: side by side
| SMCI (Supermicro) | TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | |
|---|---|---|
| 1-year return | -14.1% | +80.5% |
| 5-year return | +983.4% | +289.6% |
| Volatility (ann.) | 107.1% | 34.9% |
| Beta vs S&P 500 | 3.08 | 1.59 |
| Max drawdown (3Y) | -84.8% | -36.8% |
| Market cap | $24.9B | $2,216.2B |
| P/E (trailing) | 11.5 | 31.1 |
| Dividend yield | 0.00% | 6.22% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | SMCI | TSM |
|---|---|---|
| 2022 | +86.8% | -36.7% |
| 2023 | +246.2% | +42.3% |
| 2024 | +7.2% | +92.6% |
| 2025 | -4.0% | +55.9% |
| 2026 | +31.4% | +41.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMCI and TSM good diversifiers for each other?
Reasonably. At 0.46, SMCI and TSM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SMCI and TSM?
Using weekly returns as of 2026-08-27: 0.46 over 3 years, with 0.41 over the last year and 0.42 over 5 years.
Is TSM a good diversifier for SMCI?
Reasonably. At 0.46, SMCI and TSM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.46 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/smci-vs-tsm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/smci-vs-tsm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SMCI correlations · TSM correlations
