TSMC, Broadcom may join $4 trillion market cap club by 2028: foreign media

Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom are poised to become the next tech giants to surpass $4 trillion in market capitalization, potentially by 2028, according to market analysis. This projection is fueled by the ongoing global expansion of the Artificial Intelligence (AI) industry, which heavily relies on semiconductor and AI hardware suppliers.

TSMC is identified as a direct beneficiary of the AI boom. Its advanced manufacturing processes are essential for producing the majority of global AI chips, making it a key supplier for companies like Broadcom. TSMC Chairman and CEO C.C. Wei recently indicated that chip demand is expected to remain robust through at least 2029-2030. To meet this demand, TSMC is investing an additional $100 billion to expand its production facilities in Arizona, underscoring the rapid growth in demand for AI and high-performance computing chips.

Market estimates suggest TSMC's earnings per share (EPS) could reach approximately $24.46 by 2028. With a price-to-earnings (P/E) ratio of 30, its American Depositary Receipts (ADR) could trade around $733, representing a potential 71% upside from current levels and a market value close to $3.74 trillion. Analysts believe Wall Street has historically underestimated TSMC's growth, making a $4 trillion valuation by 2028 a distinct possibility if the company continues to exceed expectations.

Broadcom is also highly regarded, differentiating itself by focusing on customized AI chips rather than general-purpose GPUs. The company collaborates with major tech firms like Alphabet to develop specialized AI processors. Current Wall Street forecasts place Broadcom's 2028 EPS at around $21.28. A P/E ratio of 30 would suggest a stock price of approximately $638, a 52% increase from its current value. Analysts suggest the market may be underestimating the growth potential from large cloud providers adopting Broadcom's custom AI infrastructure, anticipating several years of rapid expansion in its custom chip business as tech giants increase AI data center investments.

Both TSMC and Broadcom are strategically positioned at the core of the AI infrastructure investment surge. If AI demand continues its current expansion rate, these companies are expected to grow their revenues and profits significantly in the coming years, potentially challenging the $4 trillion market cap threshold. While 2028 is a target year, surpassing $4 trillion in 2029 remains a strong possibility.