2 Unstoppable AI Stocks Headed to $3 Trillion

As of right now, there are only four stocks that are valued at $3 trillion or more. That's an exclusive list, but I think it's about to become a bit more crowded. Two stocks that I think are headed toward this valuation level are Taiwan Semiconductor (NYSE: TSM) and Broadcom (NASDAQ: AVGO).

Both of these stocks are valued at about $2 trillion, so it will take their stocks rising 50% to achieve the $3 trillion mark. That's a solid return, as long as it happens in a reasonable time frame. However, incredible artificial intelligence (AI) demand could push each of these companies across the $3 trillion threshold by the end of next year, making them no-brainer stock picks now.

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Taiwan Semiconductor and Broadcom are seeing immense AI demand

It doesn't take a master's degree to understand how Taiwan Semiconductor is benefiting from the AI build-out. It's the leading logic chip manufacturer in the world, and countless firms use its services to fabricate the chips that are designed by its clients. This also places TSMC in a neutral position, as it doesn't care whose chips are the best to use for AI training or inference; all that matters is that it's fabricating them. This is leading to outstanding growth for Taiwan Semiconductor.

For the period between 2024 and 2029, Taiwan Semiconductor's management team expects its AI chip compounded annual growth rate (CAGR) to be in the mid- to high-50% range. That's incredible growth, and it's still seeing that so far in 2026. In Q1, TSMC's revenue growth was 41% in U.S. dollars, and it bumped its 2026 total revenue growth outlook to more than 30%. This huge boost showcases that TSMC believes that AI demand will cause it to have a phenomenal 2026 and beyond.

Broadcom is a bit of a newcomer to the AI segment. Instead of designing another GPU-like AI computing chip, it has partnered with several AI hyperscalers to design custom AI chips that fit their computing needs. This has worked out well for both Broadcom and its clients, as these chips often provide better cost performance than GPU-based training. Demand for these chips is exploding, and management is incredibly bullish on their future.

During Q1 the 2026 fiscal year (ended Feb. 1), its AI semiconductor division generated $8.4 billion in revenue, up 106% year over year. Custom AI chips are a part of that segment, but not the whole thing. However, by the end of 2027, management expects custom AI chips alone to generate $100 billion in annual revenue. That's impressive growth, and once again showcases the power of AI spending.

But can it drive these two to a $3 trillion market cap?

The road to $3 trillion is clear

For Taiwan Semiconductor, its will need to clear about $600 a share from about $400 now to be worth $3 trillion. The average Wall Street analyst expects Taiwan Semiconductor to generate $19.29 in earnings per share at the end of 2027, which would require Taiwan Semiconductor to achieve a valuation of 31 times trailing earnings for it to reach a $3 trillion market cap. Currently, it's price-to-earnings (P/E) ratio checks in at 33, so if this projection comes true and its valuation stays flat, Taiwan Semiconductor will reach this mark by the end of next year.

The market is a bit more enthusiastic about Broadcom's growth projections, as it currently trades at 81 times trailing earnings. That's a bit extreme, and I think a better long-term valuation is closer to the 35 times earnings mark. By the end of next year, the average Wall Street analyst expects $18.12 in earnings per share, equating to a $634 per share stock price. That's 50% upside, which is more than enough for Broadcom to reach the $3 trillion valuation mark by the end of next year.

Keithen Drury has positions in Broadcom and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.