Artificial Intelligence (AI) is changing how people interact with technology in business and personal life. Although some investors may be tired of the dominance of the stock market interaction, companies are still spending huge on AI due to unprecedented demand. In addition, the market has not given these shares unrealistic multiples, which are some of them great purchases.

Two that tops are my list Taiwan semiconductor manufacturing ,TSM -2.04%, And Broadcom ,Evgo -2.90%,Both are incredibly executed at high levels and have an impressive growth runway.

Both companies are important suppliers for AI Hyperscalers

Both companies are members of the $ 1 trillion club, each of which is around $ 1.1 trillion valuation. However, I believe that each company can easily cross the $ 2 trillion mark, each of which is experienced.

The Taiwan semiconductor (or TSMC for short) is a foundry that makes chips for many top technology companies in the world including broadcom. NvidiaIts customers are unable to manufacture self chips, so they do farming that work for foundry such as TSMC.

The company has achieved a reputation for the best-in-class execution and technology offering, which is why it has become an important partner for many major technical companies. And because TSMC is only a foundry and is not trying to marketing its own chips, it can remain neutral in the AI ​​race.

Broadcom is a large -scale technical group, whose products include mainframe software, cyber security, and virtual desktops. However, investors are the most excited about its AI product line, including connectivity switch and expiors, which are custom AI accelerator. In the second quarter of Fiscal 2025, XPU demand increased double digits (ended May 2) and AI networking gained 70%.

Both companies are living quite neutral in the AI ​​race, allowing them to be successful regardless of winning the client. I consider them to be the top investment in AI, because I can benefit from the huge AI build-out, without the need to worry about whether the technique becomes a future wave. Because their customers are still spending money with these two, they are benefiting to a great extent.

Furthermore, each company expects a strong growth over the next few years, causing them to shop now.

Each company is ready to give huge growth

TSMC’s management projects are that it will achieve 20% compound annual growth rate in the next five years, which will lead to about 150% revenue increase on that deadline. Some TSMC -sized companies have achieved this, but investors should not have any reason to suspect the management of how well the business is connected and how many advanced orders are being given.

Broadcom is hoping to generate its AI business in revenue between $ 60 billion and $ 90 billion by 2027, with a large number of second quarter AI-related revenue, which was $ 4.4 billion (about 18 billion per annum). The company is looking at the significant demand from the AI’s estimate side, which makes sense because the industry is starting deploying more AI solutions rather than training them.

With this increase in the store for both companies, it should not be a shock that the market can slap a premium assessment on each stock. However, this is only true for broadcom, as TSMC is still quite cheaper than its expected growth.

TSM PE Ratio (further) Data by Ycharts.

37 times ahead of earningsIt has a lot of success in broadcom stock. But in its current growth trajectory, it can be an affordable price if the company achieves its $ 60 billion to $ 90 billion AI targets.

The price of TSMC corresponds to the wider market. with S&P 500 ,^GSPC -1.13%, Trading on earning 22.5 times further, despite introducing the market market-streamlight growth, the average is giving the value of chipmaker stock in many.

Due to their AI development trajectory, Both companies look like excellent purchases. Although they were on sale a few months ago, they would have been better to scoop them, but the future is still bright for both businesses.