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Artificial intelligence (AI) is reshaping where value is created in the technology supply chain, shifting attention toward companies that provide the chips powering consumer devices and data centers. Broadcom and Taiwan Semiconductor Manufacturing (TSMC) are highlighted as core beneficiaries, with both firms expected to grow revenue and earnings at materially faster rates than Apple.
Broadcom and TSMC each have market capitalizations of about $1.9 trillion, while Apple is valued at roughly $4 trillion at the time of writing. The argument is that AI demand is increasingly concentrated in the semiconductor and infrastructure ecosystem, giving these suppliers a path to outpace Apple’s more mature growth profile.
If either Broadcom or TSMC can double its market cap by 2028, it could challenge—and potentially surpass—Apple’s valuation. The article notes this would be a difficult target given risks facing semiconductor stocks, but also suggests that meeting analysts’ earnings growth expectations could still deliver substantial upside over the next few years.
Broadcom sells high-speed networking hardware, software, and custom AI accelerators. The mix is supporting strong performance, including 28% year-over-year revenue growth in the most recent quarter. By comparison, Apple’s revenue grew 16% year over year in a seasonally strong December-ending quarter.
To close the valuation gap, Broadcom would need to at least double in value. The article argues that Broadcom’s growth trajectory is already strong enough to make that possible.
The article attributes Broadcom’s momentum to custom chips scaling alongside Nvidia’s general-purpose GPUs. These specialized accelerators can be more cost-effective for certain AI workloads where Nvidia’s top-end GPUs would be too expensive or unnecessary.
For Broadcom, this segment has been expanding rapidly, with AI semiconductor revenue up 74% year over year in the most recent quarter.
TSMC is presented as a manufacturing gatekeeper for leading-edge chips used across AI systems. The company manufactures chips for Nvidia, Apple, and even Broadcom, giving it broad exposure to the AI buildout.
TSMC’s end markets include smartphones, PCs, and data centers, with AI now a major growth driver. In the first quarter, revenue growth accelerated to 40% year over year.
Management expects AI chip demand to grow more than 50% annually through 2029. The article also cites Counterpoint Research, saying TSMC controls 72% of the foundry market.
With demand pushing capacity to the limit, the article notes that growth is translating into strong margins and profitability. Analysts expect earnings per share to rise at an annualized rate of 27% over the next several years.
“Our conviction in the multi-year AI megatrend remains high, and we believe the demand for semiconductors will continue to be very fundamental.” — CEO C.C. Wei
Despite its dominance, the article states that TSMC trades at about 25 times this year’s consensus earnings estimate. It argues that if TSMC delivers on earnings growth and trades at a modestly higher earnings multiple, the stock could more than double by 2028 and potentially lift its market cap beyond $4 trillion.
The article identifies two main risks: a severe global recession and, more importantly, geopolitical conflict between Taiwan and China that could disrupt chip supply. Either scenario would likely pressure the stock.
Still, the article frames the setup as straightforward: AI-related chip demand is expected to remain robust through the end of the decade, supporting the case that leading semiconductor suppliers could outperform Apple in its more mature consumer device market.
For patient investors, Broadcom and TSMC are positioned as exposure to two dominant businesses at the heart of an AI-driven economy.
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