Analyst identifies three AI semiconductor stocks—Taiwan Semiconductor, Broadcom, and Micron Technology—as breakout performers comparable to the Magnificent Seven tech giants.

Taiwan Semiconductor is the largest logic chip manufacturer and serves as the primary foundry for Nvidia and Apple. The company projects its AI chip revenue will grow at a compound annual growth rate of nearly 60% from 2024 to 2029.

Broadcom designs application-specific integrated circuits (ASICs)—custom chips narrowly designed for specific AI workloads—in partnership with hyperscaler customers. In Q1, revenues from its AI semiconductor division grew 104% to $8.4 billion, with management projecting custom AI chips should surpass $100 billion in annual revenue by 2027.

Micron manufactures memory chips vital for AI computing. The company projects the high-bandwidth memory (HBM) market will grow from $35 billion in 2025 to $100 billion by 2028, indicating sustained strong demand and pricing power for memory chip producers.