Taiwan Semiconductor and Broadcom Rejoin $1 Trillion Club
Fueled by expectations of massive growth in artificial intelligence, Taiwan Semiconductor (TSM) and Broadcom (AVGO) have once again achieved trillion-dollar valuations.
Taiwan Semiconductor's AI-Driven Growth
Taiwan Semiconductor, a pivotal player in chip manufacturing for devices like iPhones and Nvidia GPUs, leverages cutting-edge technology and a culture of continuous improvement. They project a 45% compound annual growth rate (CAGR) in AI-related revenue over the next five years and overall growth near 20%. Their 2nm chips will launch later this year, and 1.6nm chips in 2026. This continuous improvement culture is why many companies have chosen to partner with Taiwan Semi.
Broadcom's Challenge to Nvidia
Broadcom's XPUs are also expected to challenge Nvidia's GPUs in the coming years, further solidifying its position in the AI landscape.
Strong Demand Backs Growth Forecast
TSMC's Arizona facility has already sold out its chip production capacity through 2027, indicating robust demand and supporting the company's optimistic growth projections. Trading at 21 times forward earnings, Taiwan Semiconductor presents an attractive investment opportunity, potentially reaching a $2 trillion valuation within five years.