Anticipation: The Specific AI Semiconductor Corporation is Forecasted to Reach a Valuation of $2 Trillion, Equaling Nvidia, Microsoft, Apple, Alphabet, and Amazon, by the Year 2028; Excluding Broadcom from this Prediction.
In the dynamic world of semiconductors, two companies stand out - Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom. Let's delve into their recent developments.
TSMC, a company that prints and packages designs for semiconductor giants like Nvidia and Broadcom, has managed to maintain and grow its massive market share, currently accounting for more than two-thirds of the semiconductor manufacturing market. This dominance is due in part to a virtuous cycle that ensures its continued growth. As of September 9, 2025, TSMC's market capitalization stands at approximately 31,119 billion TWD (New Taiwan Dollars).
On the other hand, Broadcom, whose market cap has surged to $1.4 trillion, thanks to a more than fivefold increase in its stock price since the start of 2023, is also making waves. Broadcom's growth is driven by its acquisition of VMware last year and its focus on AI semiconductors. AI-related revenue now constitutes roughly 30% of Broadcom's total sales, and its AI semiconductor revenue increased by 46% year over year last quarter, reaching $4.4 billion.
Broadcom expects its AI semiconductor revenue to reach $5.1 billion in the current quarter, representing a growth of approximately 60%. However, despite the stellar growth in AI chip sales and strong margin improvement from VMware, investors should expect only incremental margin improvements going forward as Broadcom scales the AI accelerator business.
The demand for TSMC's leading-edge process is strong, with companies willing to spend whatever it takes to access the next bump in power and energy efficiency. TSMC's leading-edge process node, N2, will reportedly charge a 66% premium per silicon wafer over the previous generation (N3). This strong demand is expected to produce overall revenue growth of about 20% for TSMC.
Broadcom's forward P/E ratio is 45, while TSMC's stock trades at a much more reasonable earnings multiple of 24 times expectations. TSMC's ability to maintain a strong gross margin as it ramps up the next two manufacturing processes should allow it to produce operating earnings growth exceeding that 20% mark.
If TSMC can maintain its earnings multiple and grow earnings at about 20% per year, it could be worth well over $2 trillion by 2028. Another semiconductor stock is predicted to reach a market cap of $2 trillion before Broadcom. However, Broadcom is still only growing its top line at about 20% year over year.
Over 87% of Broadcom's VMware customers have transitioned to the new subscription, resulting in double-digit growth in annual recurring revenue. This transition, combined with the growth in AI semiconductors, bodes well for Broadcom's future.
In conclusion, both TSMC and Broadcom are experiencing significant growth, particularly in the AI semiconductor sector. As they continue to innovate and adapt to market demands, their market dominance and financial success are likely to persist.
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