Taiwan Semiconductor Manufacturing (TSMC) and Broadcom are projected to reclaim their positions in the trillion-dollar club by the end of 2025, despite recent market sell-offs.

Currently, both companies have valuations around $915 billion, but favorable market trends and strong financial results are expected to drive their recovery.

The anticipated growth in demand for AI infrastructure is a key factor in both companies regaining their trillion-dollar valuations.

Broadcom is enhancing its focus on AI with products like connectivity switches and custom AI accelerators, known as XPUs, which are designed to be more efficient than traditional GPUs for specific tasks.

With major tech companies expected to invest heavily in AI infrastructure, Broadcom is strategically positioned to benefit, especially after being selected by two hyperscalers for custom accelerators.

TSMC has experienced a surge in revenue and profit, largely driven by the high demand for advanced graphics processing units (GPUs) in data centers.

Additionally, TSMC is expanding its U.S. operations with a $100 billion investment in chipmaking infrastructure, strengthening its partnerships with major clients like Nvidia and AMD.

Despite market challenges, TSMC's monthly revenue growth has been impressive, with sales increasing by 36% in January and 43% in February.

TSMC's AI-related revenue is projected to grow at a compound annual growth rate of 45% over the next five years, while the overall company anticipates a 20% CAGR.

Broadcom aims to scale its XPU infrastructure to create AI clusters of nearly one million XPUs, which could unlock new advancements in AI technology.

Broadcom's AI revenue reached $12.2 billion in 2024, indicating significant growth potential as it targets a serviceable market of $60 billion to $90 billion by 2027.

Broadcom, known for its network equipment and security solutions, is also benefiting from the rising demand for custom silicon solutions in data centers.