Amazon (NASDAQ: AMZN) has long been a titan in the tech industry, dominating both e-commerce and cloud computing.However, its recent growth has slowed, making it vulnerable to being overtaken by other companies.Currently, Amazon boasts a market cap of $2.55 trillion, but analysts predict that both Taiwan Semiconductor Manufacturing (NYSE: TSM) and Broadcom (NASDAQ: AVGO) are on track to surpass this figure within the next three years due to their strong performance in the burgeoning AI sector.
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fool.comnasdaq.comTaiwan Semiconductor Manufacturing, or TSMC, currently holds a market cap of approximately $1.77 trillion, making it the sixth-largest company globally.Over the past year, TSMC's stock has surged by 65%, significantly outpacing Amazon's modest growth of just 6% during the same period.
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fool.comaol.comTSMC's impressive trajectory is fueled by a robust demand for semiconductors, particularly as AI technologies continue to gain traction.The company reported a 36% increase in revenue for the fourth quarter of 2025, reaching $122.4 billion, driven by high factory utilization rates and a strong gross margin improvement of 3.8 percentage points.
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fool.comaol.comLooking ahead, TSMC's earnings per share (EPS) are projected to rise significantly, with estimates suggesting it could reach $23.40 by 2028, indicating a potential stock price increase to around $608, a 76% growth from current levels.
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nasdaq.comThis expected growth stems from TSMC's focus on enhancing productivity and reducing manufacturing costs, alongside its strategy of raising prices on advanced chipmaking nodes.Such factors position TSMC favorably to challenge Amazon's market cap within the next few years.
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finance.yahoo.comfool.comBroadcom, the seventh-largest company with a market cap of approximately $1.67 trillion, has also been closing the gap with Amazon.Its shares have increased by 50% over the past year, reflecting a surge in revenue from AI chip sales.Broadcom designs custom AI processors that are in high demand among tech giants and AI developers due to their superior performance and cost efficiency compared to traditional graphics processing units (GPUs).
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fool.comnasdaq.comIn fiscal 2025, Broadcom's revenue rose by 24% to $64 billion, with EPS increasing by 40% to $6.82.Importantly, the company reported an impressive order backlog of $162 billion, with $73 billion specifically related to AI, which underscores its growth potential in the sector.Analysts expect Broadcom's revenue to double in the current quarter, setting the stage for sustained financial performance over the coming years.
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nasdaq.comaol.comIf Broadcom's earnings continue to grow at the current pace, projections suggest it could reach an EPS of $17.89 by 2026.Given the company's strong market position and growth forecasts, its stock price could potentially rise to $626, representing a 78% increase from present levels.This growth trajectory further supports the notion that Broadcom could surpass Amazon in market capitalization within three years.
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fool.comnasdaq.comIn summary, both Taiwan Semiconductor Manufacturing and Broadcom are positioned for significant growth driven by the increasing demand for AI technologies.With Amazon's market cap being challenged by these two semiconductor giants, investors may want to consider the long-term potential of TSMC and Broadcom as viable alternatives for investment in the tech sector.As the landscape of tech continues to evolve, these companies could redefine their standings in the market, potentially surpassing even the most established players like Amazon in the near future.
