Taiwan Semi and Broadcom Battle for Trillion-Dollar Status

Taiwan Semiconductor Manufacturing Co. Ltd. TSM and Broadcom Inc. AVGO are currently competing for a prestigious position in the trillion-dollar club.

Taiwan Semiconductor reached a market cap of over a trillion dollars back in July but has since decreased to about $820 billion. Meanwhile, Broadcom is close behind with a market capitalization of roughly $867 billion.

Current members of this esteemed group include Apple Inc. AAPL, Microsoft Corp. MSFT, and Nvidia Corp. NVDA, all of which have seen their market caps surpass a trillion due to advancements in artificial intelligence (AI).

As both companies innovate in AI semiconductors, the question arises: who will reach a market cap of one trillion dollars next?

TSMC: Leading in AI Chip Technology

Taiwan Semiconductor is the largest contract chipmaker globally, excelling in advanced 3nm and 5nm technology critical for AI operations, serving major players like Nvidia and Apple.

As a result, TSM’s stock has surged more than 83.3% this year and 105.39% over the last twelve months.

Analysts from Needham and Susquehanna maintain an Overweight rating for TSM, with an average price target set at $236.67. This targets a potential market cap of over $1.23 trillion, which would enable TSM to re-enter the trillion-dollar league.

Chart created using Benzinga Pro

Technical indicators show that TSMC is maintaining a bullish trend, with positive buying patterns in key moving averages (8, 20, 50, and 200-day), suggesting sustained upward movement.

Currently, TSM’s stock price is $186.33, above its average levels of $170.55 for the 50-day simple moving average (SMA) and $149.54 for the 200-day SMA, which indicates a favorable technical position.

Read Also: Nvidia Poised To Overtake Apple As World’s Most Valuable Company

Broadcom: Strengthening Its AI Footprint

Broadcom is leveraging the AI trend with various semiconductor solutions tailored for data centers and networking infrastructures.

Year-to-date, Broadcom’s stock is up 69.28% and an impressive 114.05% over the last year. However, analysts project a more modest upside. Cantor Fitzgerald, Truist Securities, and UBS estimate that AVGO might reach $200, reflecting an 8.80% growth potential, pushing its market value to $934 billion.

Chart created using Benzinga Pro

Technically, Broadcom also shows positive signals. Its price sits at $184.40, supported by its 50-day SMA of $161.82 and 200-day SMA of $142.55, although it trails TSM’s growth pathway.

The Race to the Trillion-Dollar Club: TSMC in the Lead

Both companies are well-positioned to benefit from the AI sector; however, TSMC shows stronger technical indicators and greater potential for market cap growth.

If TSMC meets the price targets set by analysts, it could soon reach a market cap of $1.23 trillion, making it the frontrunner in this competitive race toward the trillion-dollar club.

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