From Yahoo Finance · · 2m
Who joins the $1 trillion chip club next
Five semiconductor names already cleared $1 trillion, and two more have a credible path there by 2028.
In brief
Five semiconductor names already cleared $1 trillion, and two more have a credible path there by 2028. AMD and ASML can both reach $1 trillion by 2028 on earnings growth alone, even if their valuation multiples shrink along the way. Originally reported by Yahoo Finance.
Five chip names, thirteen figures
Broadcom and Micron are among five semiconductor-linked companies now worth more than $1 trillion. SK Hynix crossed the line briefly and sits just under it today.
“There are now five companies directly tied to the semiconductor industry with market caps exceeding $1 trillion”
Cloud budgets keep shifting
Hyperscalers are moving capital spending away from buildings and toward servers for AI training and inference. That keeps chip demand climbing rather than cooling.
AMD bets on agentic AI
Agentic workloads need GPUs and CPUs working together, and AMD sells both. That combination is the whole argument for its next leg of growth.
Helios ships this fall
AMD's rack-scale system bundles GPUs, CPUs and networking into one server rack, so AMD claims more of the data center floor. First units arrive this fall, with interest running ahead of plan.
“customer interest is tracking ahead of expectations”
OpenAI, Anthropic and Meta signed
All three have deals to deploy Helios. Data center revenue already grew 107% year over year, and management expects AI data center revenue to grow well over 100% again this quarter.
Earnings do the heavy lifting
Analysts see AMD's EPS going from $2.65 last year to $15.61 next year. At that pace the stock could fall from 66 times earnings to the low 20s by 2028 and still be worth $1 trillion.
ASML owns the machines
Nobody else builds the most advanced lithography machines that print patterns on silicon. The machines last 30 years, which locks customers in for decades.
“it's the only company capable of producing the most advanced lithography machines”
Capacity up 69 percent
ASML plans to raise manufacturing 30% next year and possibly 30% more in 2028. If sales track capacity, 2028 revenue lands near 74 billion euros, far above the old 60 billion target for 2030.
A discount on a monopoly
ASML trades at 28 times forward earnings, in line with rivals that lack its lock on lithography. Growing earnings with revenue gets it to $1 trillion by 2028 even if the multiple slips 10%.
The takeaway
AMD and ASML can both reach $1 trillion by 2028 on earnings growth alone, even if their valuation multiples shrink along the way.
