The “Magnificent Seven” tech stocks, including giants like Nvidia, Apple, and Microsoft, have dominated investor attention, but analysts suggest that Taiwan Semiconductor Manufacturing (TSM) and Broadcom (AVGO) could offer greater upside. Both companies are positioned to capitalize on the surge in AI spending, with TSM expected to see AI chip revenue grow at a compound annual growth rate of 50% from 2024 to 2029, alongside an overall revenue growth of 25%.

Broadcom is also making strides in the AI sector with its custom AI chips, particularly through partnerships with major hyperscalers like Google. The company reported $8.4 billion in sales from its custom AI chip division in its latest fiscal quarter, projecting that figure could exceed $100 billion by 2027.

For investors, TSM and AVGO represent compelling opportunities, especially as they remain below their all-time highs. Their growth trajectories suggest they may outperform many of the established players in the Magnificent Seven.

Source: fool.com