1 Unstoppable Stock That Could Join Microsoft, Apple, Nvidia, Alphabet, Amazon, and Meta in the $1 Trillion Club

This semiconductor specialist has a vast reach that permeates the artificial intelligence (AI) ecosystem, which is boosting its growth.

"The times they are a-changin'," as Bob Dylan once sang.

Once upon a time, it was industrial and oil businesses that topped the list of the world's most valuable companies, but over the past 20 years, there's been a paradigm shift at the top. For example, General Electric and ExxonMobil were the largest companies in the world in 2004, when measured by market cap, clocking in at $319 billion and $283 billion, respectively.

A lot can happen over the course of two decades, and now, eight of the top 10 companies hail from the halls of technology. Microsoft and Apple are engaged in an epic battle for the title of the "world's most valuable company." Each currently tops out at roughly $3.3 trillion -- and the top spot has changed hands several times over the past week or so. Nvidia is nipping at their heels with a market cap of $3.2 trillion, well ahead of Alphabet and Amazon, with market caps of $2.2 trillion and $1.9 trillion, respectively. Meta Platforms is pulling up the rear in the $1 trillion club, with a market value of $1.2 trillion. The common denominator that has propelled many of these tech stocks higher is the advent of artificial intelligence (AI), and the technological revolution is just getting started.

With a market cap of roughly $851 billion (as of this writing), Broadcom (AVGO -4.38%) recently joined the top 10 and seems destined to join this elite fraternity of companies. The company enjoys a unique position in the AI infrastructure, and the prevailing secular tailwinds could propel it to membership sooner than later.

You want chips with that?

Broadcom supplies a broad cross-section of semiconductor, software, and security solutions that reach into every corner of the mobile, broadband, cable, and data center spaces. In fact, the company notes that "99% of all internet traffic crosses through some type of Broadcom technology." This helps illustrate the company's critical place in the AI revolution, as this unique collection of technologies underpins the advancement of generative AI, which primarily exists in data centers and in the cloud, but is quickly moving to the edge.