By John Ballard
Publication Date: 2026-05-07 21:42:00
Chips are the building blocks of artificial intelligence (AI), and the growing demand has sent the PHLX Semiconductor Sector up 258% over the past three years. The bull market may not be over, as Statista estimates the industry will increase from $891 billion in 2026 to nearly $1.3 trillion by 2030.
Those estimates won’t hold up without growth from Taiwan Semiconductor Manufacturing (TSM 0.84%) and Broadcom (AVGO +4.27%). These are two of the largest companies in the industry, with combined annual revenues of roughly $200 billion. They serve crucial roles in the AI supply chain that could drive attractive shareholder returns for years to come.
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Taiwan Semiconductor Manufacturing
Intel and Micron Technology recently saw a surge in data center demand, sending their share prices higher. But overall, no chip company has benefited more over the last few years than Taiwan Semiconductor Manufacturing (TSMC). It controls 72% of the chip foundry market,…