RXT vs. TSM

Last updated Jun 3, 2026

RXT (Rackspace Technology, Inc.) and TSM (Taiwan Semiconductor Manufacturing Company Limited) are both stocks. Both are in the Technology sector — RXT in Software - Infrastructure, TSM in Semiconductors. Over the past 5 years, RXT returned -23.44%/yr vs 31.74%/yr for TSM. At a 0.26 correlation, their price movements are largely independent.

Performance

RXT vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Rackspace Technology, Inc. (RXT) and Taiwan Semiconductor Manufacturing Company Limited (TSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RXT achieves a 461.33% return, which is significantly higher than TSM's 44.10% return.

RXT

• 1D: -7.94%
• 1M: 207.91%
• YTD: 461.33%
• 6M: 448.40%
• 1Y: 429.13%
• 3Y*: 45.76%
• 5Y*: -23.44%
• 10Y*: —

TSM

• 1D: -2.24%
• 1M: 8.73%
• YTD: 44.10%
• 6M: 48.60%
• 1Y: 123.66%
• 3Y*: 66.46%
• 5Y*: 31.74%
• 10Y*: 36.20%

*Multi-year figures are annualized to reflect compound growth (CAGR)

RXT vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
RXT Rackspace Technology, Inc.	461.33%	-56.07%	10.50%	-32.20%	-78.10%	-29.33%	16.29%
TSM Taiwan Semiconductor Manufacturing Company Limited	44.10%	55.91%	92.58%	42.33%	-36.75%	12.09%	34.83%

Correlation

The correlation between RXT and TSM is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (All Time) Calculated using the full available price history since Aug 6, 2020	0.26

The correlation between RXT and TSM shifts across timeframes, from 0.18 (1 year) to 0.29 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap RXT : $1.36B TSM : $2.26T
EPS RXT : -$0.60 TSM : $373.98
PS Ratio RXT : 0.49 TSM : 0.55
Total Revenue (TTM) RXT : $2.70B TSM : $4.13T
Gross Profit (TTM) RXT : $498.60M TSM : $2.55T
EBITDA (TTM) RXT : $149.50M TSM : $3.14T

Return for Risk

RXT vs. TSM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RXT

RXT Risk / Return Rank: 91
RXT Sharpe Ratio Rank: 82
RXT Sortino Ratio Rank: 98
RXT Omega Ratio Rank: 95
RXT Calmar Ratio Rank: 90
RXT Martin Ratio Rank: 88

TSM

TSM Risk / Return Rank: 95
TSM Sharpe Ratio Rank: 96
TSM Sortino Ratio Rank: 95
TSM Omega Ratio Rank: 92
TSM Calmar Ratio Rank: 94
TSM Martin Ratio Rank: 97

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RXT vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Rackspace Technology, Inc. (RXT) and Taiwan Semiconductor Manufacturing Company Limited (TSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	RXT	TSM	Difference
Sharpe ratio Return per unit of total volatility	1.55	3.49	-1.95
Sortino ratio Return per unit of downside risk	5.41	4.06	+1.35
Omega ratio Gain probability vs. loss probability	1.58	1.49	+0.09
Calmar ratio Return relative to maximum drawdown	4.87	6.86	-1.99
Martin ratio Return relative to average drawdown	11.05	24.68	-13.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RXT vs. TSM - Sharpe Ratio Comparison

The current RXT Sharpe Ratio is 1.55, which is lower than the TSM Sharpe Ratio of 3.49. The chart below compares the historical Sharpe Ratios of RXT and TSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RXT	TSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.55	3.49	-1.95
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.16	0.86	-1.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.13	0.37	-0.50

Drawdowns

RXT vs. TSM - Drawdown Comparison

The maximum RXT drawdown since its inception was -98.43%, which is greater than TSM's maximum drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for RXT and TSM.

Drawdown Indicators

	RXT	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-98.43%	-89.08%	-9.35%
Max Drawdown (1Y) Largest decline over 1 year	-77.65%	-18.14%	-59.51%
Max Drawdown (3Y) Largest decline over 3 years	-86.50%	-36.82%	-49.68%
Max Drawdown (5Y) Largest decline over 5 years	-98.08%	-56.47%	-41.61%
Max Drawdown (10Y) Largest decline over 10 years	—	-56.47%	—
Current Drawdown Current decline from peak	-79.09%	-2.24%	-76.85%
Average Drawdown Average peak-to-trough decline	-71.94%	-42.89%	-29.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	34.20%	5.03%	+29.17%

Volatility

RXT vs. TSM - Volatility Comparison

Rackspace Technology, Inc. (RXT) has a higher volatility of 89.33% compared to Taiwan Semiconductor Manufacturing Company Limited (TSM) at 11.64%. This indicates that RXT's price experiences larger fluctuations and is considered to be riskier than TSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RXT	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	89.33%	11.64%	+77.69%
Volatility (6M) Calculated over the trailing 6-month period	178.08%	27.19%	+150.89%
Volatility (1Y) Calculated over the trailing 1-year period	279.89%	35.61%	+244.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	146.71%	37.27%	+109.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	137.61%	34.12%	+103.49%

Dividends

RXT vs. TSM - Dividend Comparison

RXT has not paid dividends to shareholders, while TSM's dividend yield for the trailing twelve months is around 0.76%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RXT Rackspace Technology, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TSM Taiwan Semiconductor Manufacturing Company Limited	0.76%	1.00%	1.18%	1.78%	2.49%	1.57%	1.56%	3.46%	3.64%	2.32%	2.61%	2.54%

Financials

RXT vs. TSM - Profitability Comparison

The chart below illustrates the profitability comparison between Rackspace Technology, Inc. and Taiwan Semiconductor Manufacturing Company Limited over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

RXT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Rackspace Technology, Inc. reported a gross profit of 119.10M and revenue of 678.10M. Therefore, the gross margin over that period was 17.6%.

TSM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a gross profit of 759.06B and revenue of 1.15T. Therefore, the gross margin over that period was 66.3%.

RXT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Rackspace Technology, Inc. reported an operating income of -17.80M and revenue of 678.10M, resulting in an operating margin of -2.6%.

TSM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported an operating income of 664.08B and revenue of 1.15T, resulting in an operating margin of 58.0%.

RXT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Rackspace Technology, Inc. reported a net income of 8.30M and revenue of 678.10M, resulting in a net margin of 1.2%.

TSM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a net income of 578.40B and revenue of 1.15T, resulting in a net margin of 50.5%.

Frequently Asked Questions

Can I hold both RXT and TSM in my portfolio?

RXT and TSM have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RXT or TSM?

RXT has higher volatility (89.33%) compared to TSM (11.64%). In terms of maximum drawdown, RXT dropped -98.43% vs TSM's -89.08%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (3.49 vs 1.55), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.