From Nasdaq: 2024-11-16 11:14:00

Tesla (NASDAQ: TSLA) is currently the eighth-largest company in the world with a market cap of over $1.05 trillion. Despite underperforming the S&P 500 for most of 2024, the stock has surged nearly 50% in the past month, driven by the results of the U.S. elections and optimism surrounding CEO Elon Musk’s relationship with President-Elect Donald Trump.

However, Tesla’s recent financial performance has been lackluster, with growing competition impacting delivery numbers and disappointing investors with the Cybercab unveiling. Analysts project a modest 4% annual earnings growth for the next five years, suggesting a bumpy road ahead for Tesla’s growth.

Taiwan Semiconductor Manufacturing (NYSE: TSM) and Broadcom (NASDAQ: AVGO) are close behind Tesla and expected to surpass it in market cap over the next five years. TSMC, the world’s 10th largest company, leads the semiconductor foundry industry with a 62% market share and anticipates strong growth driven by the demand for AI applications across various sectors.

TSMC’s revenue in 2024 has already seen a significant 31% year-over-year increase, with a forecasted 30% revenue growth for the full year. Analysts predict a 26% annual earnings growth over the next five years, positioning TSMC as a strong contender to overtake Tesla in market cap.

Broadcom, the 11th largest company globally, specializes in custom AI chips and networking solutions. With a leading position in the custom AI chip market and a forecasted 20% annual revenue growth, Broadcom is poised to outgrow Tesla within the next five years. Strong tailwinds in AI chip demand and networking revenue contribute to Broadcom’s promising earnings outlook.



Read more at Nasdaq: Prediction: These 2 Stocks Will Be Worth More Than Tesla in the Next 5 Years