2 Stocks That Could Be Worth More Than Apple by 2028

The article argues Broadcom and TSMC could outperform Apple as AI chip demand drives faster growth, with Broadcom revenue up 28% last quarter and AI semiconductor revenue up 74% year over year. Analysts expect EPS growth of 41% annualized for Broadcom and 27% for TSMC, while TSMC reported 40% revenue growth in Q1 and management sees AI chip demand rising more than 50% annually through 2029. Both stocks face risks, including Broadcom customer concentration and TSMC geopolitical exposure, but the overall outlook is constructive.

Analysis

The market is increasingly pricing AI as a stack, not a single winner: AVGO monetizes custom silicon and networking, while TSM captures the toll bridge on fabrication capacity. That creates a powerful second-order effect: even if end-demand normalizes for one customer cohort, the ecosystem can keep compounding as long as compute intensity per model and per inference keeps rising. The real competitive pressure is not Apple losing share in devices so much as capital shifting away from mature consumer hardware toward infrastructure vendors with multi-year visibility.

The underappreciated risk is concentration at the spending layer, not the technology layer. AVGO’s growth is highly leveraged to a handful of hyperscaler decisions, so a 1-2 quarter pause in capex could compress the multiple faster than earnings re-rate can cushion it. TSM looks structurally better diversified, but its bottleneck advantage also means any supply-chain easing or customer vertical integration effort would reduce pricing power before unit demand falls materially.

Consensus still seems to underestimate how long AI infrastructure can stay in scarcity mode. If AI workloads move from training to inference at scale, demand shifts from a few flagship accelerators to a broader mix of networking, custom ASICs, and foundry capacity, which should support both AVGO and TSM even if Nvidia growth decelerates. The contrarian view is that valuation upside may be more modest than the narrative suggests unless margins expand again; otherwise, high growth merely protects current multiples rather than driving a clean double.

Near term, the trade is not about chasing momentum but about owning the cleaner earnings revisions. The best setup is a relative long in AI infrastructure versus mature mega-cap software/hardware, with the catalyst window extending over the next 2-4 quarters as guidance resets higher. Geopolitics remains the low-frequency, high-severity risk for TSM, while customer concentration is the main drawdown vector for AVGO.

Key Decisions for Investors

• Go long AVGO vs AAPL on a 3-6 month horizon: favor the higher earnings revision path and AI exposure; risk/reward is attractive if AI capex stays firm, but trim if hyperscaler commentary turns cautious.
• Initiate a smaller, higher-conviction long TSM position vs NVDA for 6-12 months: TSM is the toll collector on the entire AI stack, with less multiple risk than the chip-design names, but size it below normal due to Taiwan geopolitical tail risk.
• Use AVGO Jan-2027 calls instead of outright equity for upside capture: defined risk works well because the stock can re-rate on multi-year AI revenue visibility, but customer concentration makes the path volatile.
• Avoid chasing AAPL on a 6-12 month view: the issue is not earnings collapse, but slower incremental value capture versus infrastructure names; if anything, use it as a funding source for AI beneficiaries.
• For hedging, consider a TSM put spread financed by selling out-of-the-money calls only if geopolitical headlines intensify; otherwise the skew is too expensive for routine hedging.