Two AI Stocks Poised to Eclipse Apple by 2030

Published Date : 12/7/2025 

While Apple's AI strategy has lagged, Taiwan Semiconductor and Broadcom are positioned to see significant growth. Could they surpass Apple by 2030? Find out in this detailed analysis. 

Technology is ever-evolving, and companies must adapt or risk becoming obsolete. Apple, despite its massive market presence, is facing challenges in the realm of artificial intelligence (AI). Its AI strategy has underperformed compared to its peers, and the company has not launched any innovative new products recently, leading to stagnation in growth.

As a result, it's not surprising to see Apple's valuation potentially decline and be surpassed by companies that are thriving in the age of AI, such as Taiwan Semiconductor and Broadcom. Both of these companies are poised for significant growth over the next few years, and that growth could drive them to surpass Apple by 2030.

Apple currently has a market capitalization of $3.1 trillion, while Broadcom and Taiwan Semiconductor (TSMC) have valuations of $1.3 trillion and $1.2 trillion, respectively. For Broadcom and TSMC to surpass Apple, they would need to nearly triple in value over the next five years, which is a daunting task. However, they may have some help from Apple itself.

Apple's earnings growth has slowed to a snail's pace over the past few quarters. There's not much growth left for Apple, and the expectation is that Apple will likely not increase earnings per share (EPS) significantly faster than a high-single-digit rate. Considering the S&P 500 returns around 10% annually, Apple should likely receive no more than a market premium because the odds of it outperforming the market are slim. However, the stock maintains a significant premium to the broader market, with Apple trading at 32.7 times earnings compared to the market's 24.2 times.

This suggests we may see multiple contractions over the next few years. If Apple were to trade at the same price as the S&P 500, its market capitalization would be approximately 25% lower than it is today—$2.32 trillion. That would require Broadcom and Taiwan Semiconductor's stocks only to roughly double, a much more achievable task.

Taiwan Semiconductor is in a unique position within the AI race. It is the leading chip foundry, and many of the AI chips that power the AI race are produced in its facilities. As a result, management has an excellent view into what demand will look like, and it has given a bold projection that its AI-related revenue will increase at a 45% compounded annual growth rate (CAGR) over the next five years. For the overall growth rate, management projects it will rise at nearly a 20% CAGR.

A 20% CAGR indicates that TSMC's revenue would rise by about 150%. This could position Taiwan Semiconductor to be neck-and-neck with Apple once its growth is factored in. If the AI race persists for much longer, it could easily surpass Apple around the 2030 mark.

Broadcom has several business units, but its most promising are those related to AI. Its connectivity switches are already being deployed in data centers everywhere to stitch together information that is being run on different pieces of hardware. However, it's most excited about its custom AI accelerators, which are alternatives to graphics processing units (GPUs). These units, which Broadcom calls XPUs, can outperform GPUs when a workload is set up properly, and they are becoming a wildly popular alternative.

Broadcom sees a massive market for these units and projects that they will have an addressable market of between $60 billion and $90 billion by 2027. Considering Broadcom has generated $57 billion in revenue over the past 12 months, this would indicate massive growth for the company. As a result, I believe Broadcom could surpass Apple in size by 2030.

It won't be an easy road ahead for these two to surpass Apple by 2030. Still, even if they don't meet that aggressive timeline, I think it's nearly guaranteed that they can eventually pass Apple based on their current growth trajectories. 

Frequently Asked Questions (FAQS): 

Q: Why is Apple lagging in AI?

A: Apple's AI strategy has underperformed compared to its peers, and the company has not launched any innovative new products recently, leading to stagnation in growth.

Q: What is the current market capitalization of Apple, Taiwan Semiconductor, and Broadcom?

A: Apple has a market capitalization of $3.1 trillion, while Taiwan Semiconductor and Broadcom have valuations of $1.2 trillion and $1.3 trillion, respectively.

Q: What is Taiwan Semiconductor's projected AI-related revenue growth?

A: Taiwan Semiconductor projects its AI-related revenue will increase at a 45% compounded annual growth rate (CAGR) over the next five years.

Q: What are Broadcom's most promising business units?

A: Broadcom's most promising business units are those related to AI, particularly its custom AI accelerators (XPUs) and connectivity switches.

Q: What is the projected addressable market for Broadcom's AI accelerators by 2027?

A: Broadcom projects that its AI accelerators will have an addressable market of between $60 billion and $90 billion by 2027. 

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