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Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM) and Broadcom Corporation (NASDAQ:AVGO) are currently vying for a seat at the elite table in a multi-trillion dollar luxury club.
Taiwan Semiconductor’s market capitalization exceeded the $1 trillion mark for the first time in July. The company has since shrunk to about $820 billion, a stone’s throw from Broadcom’s $867 billion.
Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT), and Nvidia Corp (NASDAQ:NVDA) are current members of the club after advances in AI drove their market caps above $1 trillion. .
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With TSM and Broadcom both driving important innovations in AI semiconductors, which company will be the next to hit nine zeros in market capitalization?
TSMC: AI-driven chipmaker gears up for growth
Taiwan Semiconductor has established itself as the world’s largest contract chip manufacturer, leading the market in 3nm and 5nm technologies. These chips are essential to AI workloads and power AI giants like Nvidia and Apple.
This has pushed TSM stock up more than 83.3% since the beginning of the year and 105.39% over the past year.
Analysts at Needham and Susquehanna maintain an Overweight rating on the stock, with an average price target of $236.67, suggesting 27.15% upside potential. At this level, TSM’s market capitalization would exceed $1.23 trillion, putting it back in the $1 trillion club.
Technically, TSMC is also trending bullish with buying pressure across the 8-day, 20-day, 50-day, and 200-day moving averages, all indicating continued upward momentum.
TSM stock is currently trading at $186.33, supported by the simple moving average (SMA) (50 days) of $170.55 and (200 days) SMA of $149.54, indicating positive technical indicators.
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Broadcom: AI infrastructure plays strong momentum
Broadcom is capitalizing on the AI boom with a wide range of semiconductor solutions for data centers, networking infrastructure, and real-time analytics.
The company’s stock price has increased 69.28% since the beginning of the year and 114.05% over the past year. Despite the bullish rating, the expected upside falls short of TSM. Analysts at Cantor Fitzgerald, Trust Securities, and UBS expect AVGO to reach $200, implying an 8.80% rise, pushing market cap to $934 billion. It will be done.
Technically, Broadcom is also trending positively, with its current price of $184.40 supported by moving averages such as the 50-day SMA of $161.82 and the 200-day SMA of $142.55. However, it still falls short of TSM’s strong growth trajectory.
TSMC could outpace Broadcom in $1 trillion race
Both stocks stand to benefit from AI, but TSMC has the edge with superior technical metrics and greater market cap potential.
If it meets analysts’ upside potential, TSM would likely reach the $1 trillion club before Broadcom, as its market cap would soar towards $1.23 trillion.
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The article Taiwan Semiconductor vs. Broadcom: Who Will Be the Next $1 Trillion AI Giant? originally appeared on Benzinga.com
