2 Stocks That Could Be Worth More Than Apple by 2028

Broadcom and TSMC are presented as the key AI infrastructure beneficiaries, with Broadcom's revenue up 28% year over year and AI semiconductor revenue up 74%, while TSMC's first-quarter revenue growth accelerated to 40% year over year. Analysts expect EPS to grow at 41% annually for Broadcom and 27% for TSMC, supported by long demand visibility and strong AI chip demand forecasts through 2027-2029. The article is broadly positive on both stocks, though it also highlights risks such as customer concentration for Broadcom and Taiwan-China geopolitical tensions for TSMC.

Analysis

The market is starting to re-rate AI value capture away from the branded device layer and toward the infrastructure bottlenecks that actually constrain deployment. AVGO and TSM are better positioned than the headline AI beneficiaries because both sit in the scarce parts of the stack: custom silicon design/aggregation on one side and advanced fabrication on the other. The second-order effect is that their earnings are less exposed to end-demand volatility than many AI application names, because hyperscalers can slow capex, but they cannot easily source equivalent capacity or process nodes elsewhere.

The main setup mistake is treating the AI buildout as a single trade. AVGO has the cleaner operating leverage, but its customer concentration creates a “lumpy delta” risk: if one or two cloud buyers digest prior spend for a quarter or two, the stock can derate hard despite unchanged medium-term demand. TSM is the higher-quality monopoly, but its valuation may underappreciate the geopolitical convexity—equity upside is attractive over 12–24 months, yet the tail risk is binary and can overwhelm fundamentals on any escalation in Taiwan risk.

Consensus is probably underestimating how much of the AI economics will be captured by suppliers with pricing power rather than the most visible AI brands. That matters for AAPL because its multiple is implicitly anchored to mature consumer hardware growth; if AI spend keeps compounding at current rates, the comparative growth gap should widen further, not narrow. The more interesting contrarian view is that NVDA is not the only AI exposure with durable scarcity—TSM may be the cleaner expression if investors want the picks-and-shovels trade without the same customer-concentration profile.

Near term, the catalyst path is less about one earnings print and more about repeated evidence of capacity tightness, margin resilience, and capex visibility through 2027-2029. Any sign of hyperscaler digestion, weaker enterprise IT budgets, or a broad semiconductor inventory correction would challenge the thesis over 1-3 quarters. Conversely, if management commentary continues to signal multi-year backlog and no moderation in AI orders, both names can sustain a higher multiple even if broader tech sentiment softens.

Key Decisions for Investors

• Overweight TSM on a 6-12 month horizon; use weakness from geopolitical headlines as entry, since the fundamental scarcity premium can compound while the market prices in event risk rather than earnings power.
• Trade AVGO as a higher-beta AI infrastructure expression versus AAPL: long AVGO / short AAPL into any post-earnings or product-cycle strength in Apple, targeting relative multiple convergence over 3-6 months.
• For investors with mandate to hedge tail risk, pair a long TSM position with a small put spread financed by upside call overwriting; this preserves participation in the AI capex cycle while limiting Taiwan downside.
• Use AVGO only on pullbacks, not strength-chasing; customer concentration makes the stock vulnerable to quarter-to-quarter digestion, but that volatility can be monetized via 1-2 month call spreads rather than outright stock.
• Avoid treating NVDA and AVGO as redundant longs; keep both only if portfolio construction allows for semicap concentration, otherwise TSM is the cleaner core holding and NVDA should be the higher-beta trading leg.