AI surge propels potential trillion-dollar companies

by / ⠀News / March 25, 2024
AI Surge

The financial boom spurred by the rise of Artificial Intelligence (AI) continues to impress investors, especially with AI stocks playing a pivotal role in stock market growth. AI technologies like ChatGPT, unveiled in 2022, offer a promising market owing to their potential applications that aid investors in experiencing significantly increased profits.

In this cutting-edge sphere, Nvidia, which is noted for its increasingly demanded Graphic Processing Units (GPUs), stands out. Yet, companies such as Taiwan Semiconductor Manufacturing (TSMC) and Broadcom are demonstrating their prowess, showing promising potential to become trillion-dollar organizations soon. This anticipates the infinite possibilities of innovations and transformations in this industry.

Contrary to assumptions, TSMC, not Nvidia, is expected to lead the AI technology sector.

AI-driven growth boosts future trillionaires.

As the world’s largest contract chip manufacturer, TSMC owns 55% of the third-party chip production market and almost completely controls the advanced chip production sector. Due to its partnerships with leading chip designers and significant roles in generative AI, TSMC’s dominance reaches an operating margin above 40%, foretelling its future as a trillion-dollar corporation.

Broadcom, valued at $573 billion, is another company aiming to achieve a trillion-dollar valuation. Its strategic acquisition policy and diversified portfolio, especially the acquisition of VMWare, predict an increase in AI-driven growth, thus significantly expanding its revenue.

Broadcom’s unique focus on distinct areas, such as switches, accelerators, and networking solutions, rather than graphics processing units (GPUs), put it in a favorable position in the AI era. This vision solidifies their stance as the demand for such services is expected to rise considerably.

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About The Author

April Isaacs

April Isaacs is a freelance writer and editor with over 10 years of experience. From the art scene in Paris to pastures in Montana, April has covered individuals' stories and can confirm that no two stories are the same.

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