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Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) and Broadcom Inc. (NASDAQ:AVGO) is currently vying for a seat at an elite table: the exclusive trillion-dollar club.
Taiwan Semiconductor’s market capitalization crossed the trillion dollar threshold for the first time in July. Since then, it has shrunk to about $820 billion – just shy of Broadcom’s $867 billion.
Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Nvidia Corp (NASDAQ:NVDA) are among the current members of the club after their market capitalization surpassed a trillion dollars, driven by AI advances.
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With TSM and Broadcom both driving critical innovations in AI semiconductors, we wonder: which company will see its market cap reach nine zeros next?
TSMC: AI-powered chipmaker poised for growth
Taiwan Semiconductor is the world’s largest contract chipmaker and leads the market with its 3nm and 5nm technology. These chips are an integral part of AI workloads and power AI giants like Nvidia and Apple.
This has sent TSM shares up more than 83.3% year to date and 105.39% in the past year.
Analysts at Needham and Susquehanna maintain an Overweight rating, with an average price target of $236.67, implying an upside of 27.15%. A price at that level would push TSM’s market cap to more than $1.23 trillion, allowing the company to rejoin the trillion-dollar club.
Technically, TSMC is also in a bullish trend with buying pressure across the eight-, twenty-, fifty-, and two-hundred-day moving averages, all pointing to continued upward momentum.
Shares of TSM are currently trading at $186.33, supported by a simple moving average, or SMA, (50-day) of $170.55 and a SMA (200-day) of $149.54, pointing to positive technical indicators.
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Broadcom: AI infrastructure is playing with solid momentum
Broadcom is benefiting from the rise of AI through its comprehensive semiconductor solutions for data centers, network infrastructure and real-time analytics.
The stock is up 69.28% this year and 114.05% over the past year. Despite bullish ratings, the expected uptrend lags behind TSM. Analysts from Cantor Fitzgerald, Truist Securities and UBS see AVGO reaching $200, implying an upside of 8.80%, which would push its market cap to $934 billion.
Technically, Broadcom is also trending positively, with the 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 lags behind TSM’s stronger growth trajectory.
TSMC could surpass 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 impending jump to a $1.23 trillion market cap if it meets analysts’ upside potential, TSM seems more likely to reach the trillion-dollar club before Broadcom.
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This article Taiwan Semiconductor Vs. Broadcom: Who will be the next trillion-dollar AI giant? originally appeared on Benzinga.com
