The $3 trillion stock club is an exclusive group that only a few companies are currently in. Nvidia, Apple, and Alphabet are the current members, although Microsoft may be in there depending on the daily fluctuations of the market.
I think two stocks that could join them over the next three years are Taiwan Semiconductor Manufacturing (TSM +0.57%) and Broadcom (AVGO +0.85%). These two have a ways to go, as TSMC is valued at $1.75 trillion while Broadcom is at $1.59 trillion. To get to $3 trillion, the two must rise 71% and 89%, respectively.
If either stock grows at that pace over the next three years, it will be considered a highly successful investment, making them both genius buys now. I think they are both primed to rise to the $3 trillion mark, and investors should position themselves accordingly.
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Both Broadcom and TSMC are huge beneficiaries of the AI build-out
Broadcom and TSMC have each been successful investments over the past few years due to the massive amount of money being spent on AI infrastructure. That isn't slowing down, and 2026 looks to be another year of record-setting expenditures on data centers set up to process AI.
TSMC is seeing strong growth from this trend due to its positioning as a neutral party. TSMC is the world's top logic chip producer and is a leader in the production and technological side. It doesn't matter which company's products are placed in a data center; chances are, there are a ton of chips from TSMC in them. Because it doesn't have any skin in the game in terms of which company is the current leader in AI computing hardware, it's just rooting for AI spending to continue increasing, something that seems like an obvious trend.
NYSE: TSM
Key Data Points
Broadcom does a lot of different things as a company, but what investors are most excited about is its custom AI chip business. Instead of building another broad-purpose computing unit that can handle a wide variety of workloads, Broadcom is focusing on designing custom AI chips that it designs in collaboration with a specific end user. This allows the end user to tailor the chip to the workload, resulting in incredibly efficient processing.
Additionally, because there aren't any unnecessary features on the unit, these units are far more cost-effective. However, they won't completely replace broad-purpose computing units like a graphics processing unit (GPU). Still, there's a huge market opportunity for these chips, and Broadcom is capitalizing on the demand.
NASDAQ: AVGO
Key Data Points
Both of these have a rock-solid investment thesis. But how will they get to $3 trillion?
Broadcom will beat TSMC to the $3 trillion mark
Although Broadcom is starting behind TSMC, I think it will reach the $3 trillion valuation mark a year sooner. By the end of 2027, Broadcom expects its AI chip business to generate $100 billion in revenue. In the first quarter of fiscal year 2026 (ended Feb. 1), its entire AI semiconductor business (which includes other products) brought in $8.4 billion. That's impressive growth, and Wall Street analysts agree with Broadcom's projections. On average, Wall Street analysts estimate that Broadcom will generate $17.54 in earnings per share by the end of 2027. If we price Broadcom's stock at 40 times earnings, a high price, but one that makes sense considering its growth rates, that would value the stock at $701 per share -- a 109% rise.
TSMC has a bit more work to do. It's not growing nearly as fast as Broadcom, but it believes it can continue growing at a 25% compound annual growth rate between 2024 and 2029. If it delivers 25% growth in 2026 through 2028, that would lead to the stock price rising 95%, as long as the stock rises in tandem with its business. With TSMC trading at an already reasonable valuation (32 times trailing earnings), I think this projection makes sense and makes Taiwan Semiconductor a lock to be a $3 trillion company by 2028.
