Amazon has been a long-term leader in the stock market. While I still think it’s one of them, there are other, faster-growing companies that are following suit and could surpass Amazon’s market cap within the next three years.
candidate? Broadcom(NASDAQ:AVGO) and TSMC(NYSE:TSM). Both companies are set to cash in on a massive artificial intelligence (AI) building boom, which I think could propel them to outgrow Amazon in the next three years.
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Currently, Amazon’s market capitalization is $2.29 trillion. TSMC’s transaction value is US$1.76 trillion, and Broadcom’s transaction value is slightly lower, at US$1.57 trillion. Wall Street analysts expect Amazon’s revenue to grow 13% in 2026 and 12% in 2027. I would continue 2027 growth rates into 2028, which would give Amazon a target market cap of $3.25 trillion by the end of 2028.
This would require TSMC and Broadcom to generate returns of 84% and 107% respectively over the next three years to overtake Amazon. If both stocks could achieve this feat, they would easily outperform the market and become excellent investments.
But are they capable?
As we all know, both are clear beneficiaries of the development of artificial intelligence. TSMC is probably the most obvious one, as it operates the world’s leading logic chip foundry. TSMC’s chips cover almost all major AI manufacturers’ equipment, so as long as AI spending increases, TSMC will reap huge benefits.
Broadcom is a new player in the field of artificial intelligence computing units. It takes a different approach as it offers custom AI chips specifically built around a customer’s generative AI model. Broadcom’s chips may be a cheaper option than buying a general-purpose graphics processing unit (GPU) from a company like NVIDIAbut where they fail is flexibility.
Broadcom’s custom AI chips are only set up to run one workload type, so if customers need them to handle multiple workloads, GPUs are a better choice. However, now that AI hyperscalers generally know what their AI models will look like, Broadcom expects to see huge growth in the coming years.
On Broadcom’s fiscal first quarter (FY) 2026 conference call (the quarter ended February 1), CEO Hock Tan noted that management expects revenue from the AI ​​chip business to reach $100 billion by the end of 2027. In the first quarter, the business generated just $8.4 billion, up 106% year over year. The company expects second-quarter revenue of $14.8 billion. Broadcom’s AI semiconductor business is clearly growing rapidly and could easily cross the $3.25 trillion threshold needed to overtake Amazon within three years.
By the end of fiscal 2027, Wall Street analysts on average expect Broadcom’s revenue to total more than $150 billion, about 120% higher than its current trailing 12-month total. Broadcom needs a 107% return to overtake Amazon in 2028, so I think Broadcom can easily overtake Amazon based on growth alone.
Although TSMC’s growth rate is slower than Broadcom’s, its growth rate is not inferior. Analysts expect growth of 31% in 2026 and 24% in 2027. If we forecast 20% growth in 2028, TSMC’s revenue will increase by 94% in the same period. TSMC needs 84% ​​growth to overtake Amazon, so I think it has the ability to achieve higher value by the end of 2028.
These two stocks are set to deliver impressive returns over the next few years, and anyone who hasn’t invested in them should jump at the chance to buy shares now.
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Keithen Drury has worked at Amazon, Broadcom, NVIDIA, and TSMC. The Motley Fool owns and recommends Amazon, Nvidia, and TSMC. “Motley Fool” recommends Broadcom. The Motley Fool has a disclosure policy.
Prediction: Two stocks that will be worth more than Amazon in three years originally published by The Motley Fool
