Taiwan Semiconductor Manufacturing Co. Ltd. TSM and Broadcom Inc. AVGO are engaged in a fierce competition, vying for entry into the prestigious trillion-dollar club.

Taiwan Semiconductor initially breached the trillion-dollar mark in July, only to retract to around $820 billion, closely trailing Broadcom’s $867 billion.

Apple Inc AAPL, Microsoft Corp MSFT, and Nvidia Corp NVDA are among the esteemed trillion-dollar members, propelled by AI advancements.

Given the significant AI semiconductor innovations by TSM and Broadcom, the burning question arises: Which company will be the next to achieve a trillion-dollar market cap?

TSMC: Leading the Charge in AI Chips

Taiwan Semiconductor Manufacturing Co. stands out as the globe’s premier contract chipmaker, spearheading the market with groundbreaking 3nm and 5nm technology vital for AI tasks, empowering tech giants like Nvidia and Apple.

This technological prowess has catapulted TSM’s stock by a remarkable 83.3% year-to-date and an impressive 105.39% over the past year.

Analysts at Needham and Susquehanna uphold their bullish ratings, with an average price target of $236.67, indicating a potential 27.15% upside. Surpassing this target could hoist TSM’s market cap above $1.23 trillion, potentially reinstating it into the trillion-dollar echelon.

Chart created using Benzinga Pro

Technically, TSMC displays a bullish trend with buying pressure evident across its eight, 20, 50, and 200-day moving averages, all pointing to sustained upward momentum.

Currently trading at $186.33, TSM’s stock finds support from a 50-day SMA of $170.55 and a 200-day SMA of $149.54, revealing positive technical signals.

Broadcom: Harnessing AI Potential

Broadcom is leveraging the AI surge through its expansive semiconductor solutions tailored for data centers, networking infrastructure, and real-time analytics.

The company’s stock has surged by 69.28% year-to-date and an impressive 114.05% over the past year. Despite optimistic outlooks, Broadcom’s projected upside trails behind TSM’s. Analysts at Cantor Fitzgerald, Truist Securities, and UBS foresee AVGO hitting $200, suggesting an 8.80% increase, potentially elevating its market cap to $934 billion.

Chart created using Benzinga Pro

From a technical standpoint, Broadcom shows positive momentum, with its current price of $184.40 backed by moving averages including the 50-day SMA of $161.82 and the 200-day SMA of $142.55. However, it still trails TSM’s robust growth trajectory.

TSMC Leading the Charge to a Trillion-Dollar Valuation

In the race to the trillion-dollar mark, TSMC appears to have a competitive advantage, boasting superior technical indicators and a higher ceiling for market cap expansion.

With a potential leap towards a $1.23 trillion market cap if it fulfills analysts’ projections, Taiwan Semiconductor seems more poised to break into the trillion-dollar club sooner than Broadcom.

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