Core Viewpoint - The $1 trillion stock club is shrinking due to market sell-offs, with only eight companies currently holding this valuation, but Taiwan Semiconductor and Broadcom are poised to rejoin soon if the market recovers [1][2]. Group 1: Company Valuations - Taiwan Semiconductor is currently valued at approximately $770 billion, while Broadcom is valued at around $800 billion, indicating a 25% increase is needed for both to reach the $1 trillion mark [3]. - Both companies are expected to return to the $1 trillion valuation club within the next year or two [2][6]. Group 2: Taiwan Semiconductor (TSMC) - TSMC is the largest chip foundry globally, producing chips for major clients like Nvidia, Apple, and Broadcom, which allows it to maintain a neutral position in the market [4]. - TSMC is advancing its technology with the introduction of 2 nm and 1.6 nm chips, following its current 3 nm technology, which enhances its competitive edge [5]. - The CEO of TSMC expressed confidence in achieving a revenue increase of nearly mid-20s percent in U.S. dollar terms for the full year 2025, despite potential tariff uncertainties [5][6]. Group 3: Broadcom - Broadcom is developing custom AI accelerators, known as XPUs, which are alternatives to Nvidia's GPUs, targeting specific workloads and potentially capturing market share from Nvidia [7][8]. - The addressable market for Broadcom's XPUs is projected to be between $60 billion and $90 billion by 2027, with significant growth expected as new clients adopt these products [9]. - Broadcom's trailing 12-month revenue stands at $54.5 billion, and growth from the XPU segment could significantly enhance its overall revenue [9]. Group 4: Investment Opportunities - Both TSMC and Broadcom are currently viewed as attractive investment opportunities due to their lower forward price-to-earnings ratios compared to recent months [11]. - Despite Broadcom having a slightly higher premium, both companies are considered to offer great value for investors looking for long-term returns [13].

Core Insights - Currently, only eight stocks have market capitalizations exceeding $1 trillion, including six from the Magnificent Seven and Berkshire Hathaway, with Saudi Aramco being the only non-U.S. stock [1] Group 1: Tesla - Tesla is the only stock among the Magnificent Seven that has not maintained a $1 trillion valuation, having reached this mark multiple times, with its highest valuation exceeding $1.5 trillion in December 2021 [3][4] - Tesla's current market cap is approximately $895 billion, requiring a rise of about 12% to regain the $1 trillion valuation [4][5] - Analysts project an average upside of 22% for Tesla, indicating potential for the stock to reach the $1 trillion mark within the next 12 months [5] Group 2: Broadcom - Broadcom briefly achieved a $1 trillion valuation, with its all-time high at nearly $1.17 trillion in December 2024, but is currently down around 12% with a market cap of $900 billion [7][8] - The stock needs to rise approximately 11% to reach the $1 trillion valuation again, with analysts suggesting an average upside of 39% [8] Group 3: Eli Lilly - Eli Lilly, the largest pharmaceutical company, has seen a 205% increase in share price over the past three years, driven by successful weight loss and diabetes products [9][10] - The company has not yet reached a $1 trillion valuation, with its highest closing valuation at $864 billion in August 2024, and currently sits at $778 billion [10][11] - Eli Lilly would need to rise around 29% to achieve a $1 trillion market cap, with analysts projecting an average upside of 23% [11]