Taiwan Semiconductor Vs. Broadcom: Who Will Be The Next Trillion-Dollar AI Giant?

Taiwan Semiconductor Manufacturing Co. Ltd. TSM and Broadcom Inc. AVGO are currently competing for a seat at an elite table: The exclusive trillion-dollar club.

Taiwan Semiconductor’s market cap first crossed the trillion-dollar threshold in July. It has since contracted to roughly $820 billion — a stone’s throw away from Broadcom’s $867 billion.

Apple Inc AAPL, Microsoft Corp MSFT, and Nvidia Corp NVDA are among the club’s current members after their market caps exceeded a trillion dollars, fueled by AI advancements.

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With TSM and Broadcom both driving critical innovations in AI semiconductors, we ask: Which company’s market cap will attain nine zeros next?

TSMC: AI-Driven Chipmaker Poised For Growth

Taiwan Semiconductor stands as the world's largest contract chipmaker, leading the market with its 3nm and 5nm technology. These chips are integral for AI workloads, fueling AI giants like Nvidia and Apple.

This has propelled TSM's stock by over 83.3% year-to-date and 105.39% in the past year.

Analysts from Needham and Susquehanna maintain Overweight ratings, with an average price target of $236.67, implying 27.15% upside. A price at that level would push TSM's market cap to over $1.23 trillion, positioning it to re-join the trillion-dollar club.

Technically, TSMC is also in a bullish trend with buying pressure across its eight, 20, 50 and 200-day moving averages, all signaling continued upward momentum.

TSM’s stock currently trades at $186.33, supported by a simple moving average, or SMA, (50-day) of $170.55 and a SMA (200-day) of $149.54, indicating positive technical indicators.

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Broadcom: AI Infrastructure Play With Solid Momentum

Broadcom is capitalizing on the AI boom through its extensive semiconductor solutions for data centers, networking infrastructure, and real-time analytics.

Its stock is up 69.28% year-to-date and 114.05% in the past year. Despite bullish ratings, its projected upside falls short of TSM. Analysts from Cantor Fitzgerald, Truist Securities, and UBS see AVGO reaching $200, implying an 8.80% upside, which would push its market cap to $934 billion.

Technically, Broadcom is also trending positively, with its current price of $184.40 supported by moving averages, such as its 50-day SMA of $161.82 and 200-day SMA of $142.55. However, it still lags behind TSM's stronger growth trajectory.

TSMC Could Outpace Broadcom In the Trillion-Dollar Race

While both stocks are positioned to benefit from AI, TSMC has the edge, with superior technical indicators and greater market cap potential.

With an imminent leap toward $1.23 trillion in market cap if it meets analysts’ upside potential, TSM appears more likely to reach the trillion-dollar club before Broadcom.

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