2 Stocks That Will Be Worth More Than Amazon 3 Years From Now
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2 Stocks That Will Be Worth More Than Amazon 3 Years From Now
08 mins
Amazon has been a longtime stock market leader. While I’d still consider it to be one, there are other companies growing much faster that are nipping at its heels and could overtake Amazon in terms of market cap over the next three years.
The candidates? Broadcom(NASDAQ: AVGO) and Taiwan Semiconductor(NYSE: TSM). Both of these companies are set to make a fortune on the massive artificial intelligence (AI) building spree, and I think that could drive them to grow larger than Amazon over the next three years.
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Currently, Amazon sports a market cap of $2.29 trillion. Taiwan Semiconductor trades at $1.76 trillion, and Broadcom is a bit less at $1.57 trillion. Wall Street analysts expect Amazon to increase its revenue at a 13% pace in 2026 and a 12% pace in 2027. I’ll continue that 2027 growth rate into 2028, which would give Amazon a targeted market cap of $3.25 trillion by the end of 2028.
That would require Taiwan Semiconductor and Broadcom to generate returns of 84% and 107%, respectively, over the next three years to surpass Amazon. If both stocks achieve this feat, they will easily outperform the market and be fantastic investments.
But do they have what it takes?
It’s no secret that both of these are clear beneficiaries of the AI buildout. Taiwan Semiconductor is probably the most obvious one, as it operates the world’s leading chip foundry for logic chips. TSMC’s chips go into nearly all of the major AI players’ devices, so as long as there is increased AI spending, Taiwan Semiconductor will see a huge benefit.
Broadcom is the new player in the AI computing unit realm. It takes a different approach, as it’s offering custom AI chips that are specifically built around a customer’s generative AI model. Broadcom’s chips can be a cheaper alternative than buying a general-purpose graphics processing unit (GPU) from a company like Nvidia, but where they fail is flexibility.
Broadcom’s custom AI chips are only set up to run one workload type, so if a client needs them to handle multiple workloads, GPUs are the better choice. However, now that AI hyperscalers generally know what their AI models will look like, Broadcom expects to see monster growth over the next few years.
During Broadcom’s Q1 fiscal year (FY) 2026 conference call (for the quarter ending Feb. 1), CEO Hock Tan noted that management expects $100 billion in revenue from the AI chip business by the end of 2027. During Q1, this business only generated $8.4 billion, up 106% year over year. For Q2, the company expects $14.8 billion in revenue. Broadcom’s AI semiconductor business is clearly growing rapidly, and could easily push it beyond the $3.25 trillion threshold necessary to surpass Amazon in three years.
By the end of FY 2027, the average Wall Street analyst expects Broadcom’s revenue to total over $150 billion — about 120% higher than its current trailing 12-month total. Broadcom needed a 107% return to surpass Amazon by 2028, so I think, based on growth alone, Broadcom will easily be able to soar past Amazon.
While Taiwan Semiconductor is growing more slowly than Broadcom, its growth rates are no slouch either. Analysts expect 31% growth in 2026 and 24% growth in 2027. If we pencil in 20% growth in 2028, that would increase Taiwan Semiconductor’s revenue by 94% over that same time frame. Taiwan Semiconductor needed an 84% growth rate to get past Amazon, so I think it has what it takes to be worth more by the end of 2028.
The returns these two stocks will deliver will be impressive over the next few years, and anyone who isn’t invested in them should take the opportunity to load up on shares right now.
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Keithen Drury has positions in Amazon, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
