Prediction: 2 AI Semiconductor Stocks That Will Join Micron and Broadcom in the $1 Trillion Club by 2028

Several semiconductor stocks have seen their valuations zoom past the $1 trillion milestone amid the artificial intelligence (AI) spending boom. There are now five companies directly tied to the semiconductor industry with market caps exceeding $1 trillion, including Broadcom and Micron Technology. SK Hynix also saw its market cap exceed $1 trillion at one point, but currently sits just below the threshold.

Demand for semiconductors isn't slowing down anytime soon. Hyperscale cloud providers are likely to spend even more on chips in the future as capital expenditure budgets shift from building physical structures to adding and replacing servers for AI training and inference. That means more trillion-dollar companies could be in the making.

These two semiconductor stocks look poised to join the 13-figure club by 2028.

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1. Advanced Micro Devices

Advanced Micro Devices (NASDAQ: AMD) is well-positioned to capitalize on the growing use of agentic AI. Agentic AI requires coordination of GPUs and CPUs, two markets where AMD offers leading capabilities. It's combining its expertise into a rack-scale solution called Helios, and it will sell its first units this fall. Management said customer interest is tracking ahead of expectations during its second-quarter earnings call in August.

By offering a rack-scale solution, in which AMD is responsible for combining GPUs, CPUs, networking equipment, and more into a single server rack, the chipmaker is poised to capture a larger share of data center real estate. It's already struck deals with OpenAI, Anthropic, and Meta Platforms to deploy Helios. And that should accelerate its AI data center revenue.

Overall, data center revenue grew 107% year over year last quarter. Management said AI data center revenue will grow "well over" 100% in the current quarter as well. The strong revenue growth is translating into excellent earnings-per-share growth, with current market expectations calling for EPS to climb from $2.65 last year to $15.61 next year.

With stellar earnings growth and expectations for continued growth, the stock market is placing a premium on AMD. Shares currently trade for 66 times earnings expectations. But with such high expectations for earnings-per-share growth, that multiple could fall into the low 20s by 2028, and AMD could still achieve a $1 trillion market cap.

2. ASML Holding

ASML Holding (NASDAQ: ASML) makes a key piece of machinery for semiconductor manufacturing. Its lithography machines print patterns on silicon, and it's the only company capable of producing the most advanced lithography machines for high-end semiconductor manufacturing. Even its older technology is preferred by manufacturers that use it, and with a 30-year lifespan for its machines, it gets a lot of customer loyalty.

With the massive boom in demand for artificial intelligence chips, ASML has seen a high level of customer commitments as both advanced logic chipmakers and lower-level memory chipmakers look to buy more machines. To that end, it's planning a significant expansion to its existing capacity, with plans to increase manufacturing by 30% next year, and potentially another 30% in 2028. That would be a 69% total expansion from its current capabilities.

Back in 2024, management provided a long-term outlook calling for 60 billion euros in revenue by 2030. With the expanded capacity, it should be able to blow that number out of the water. If it merely grows sales at the same rate as its capacity expansion over the next two years, it'll generate about 74 billion euros for 2028 based on management's outlook for 2026.

The company should be able to exhibit operating leverage on its R&D and other operating expenses as it expands production capacity, leading to strong earnings growth. With a forward P/E ratio of just 28, ASML trades around the same value as other silicon wafer fabrication equipment providers. But its dominance of the lithography market should afford it a premium. If earnings merely grow in line with its expected revenue growth, ASML can reach a $1 trillion valuation by 2028 even with a 10% compression in its earnings multiple.

Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Broadcom, and Micron Technology. The Motley Fool has a disclosure policy.