Artificial intelligence (AI) is a driving force behind significant investments in tech, with companies like Taiwan Semiconductor Manufacturing (NYSE: TSM) and Broadcom (NASDAQ: AVGO) at the forefront. Both companies are valued at approximately $1.1 trillion and are poised for extraordinary growth, with TSMC projected to achieve a near 20% compound annual growth rate over the next five years. Broadcom anticipates its AI business will generate between $60 billion and $90 billion in revenue by 2027, up from $4.4 billion reported in Q2 2025.
While Broadcom’s stock is currently priced at 37 times forward earnings, TSMC remains in line with the broader market at 22.5 times. Both companies benefit from increasing demand in the AI sector, indicating promising long-term potential for investors. With significant growth trajectories, TSMC and Broadcom stand out as compelling investments in the AI space.
