1 Unstoppable Stock to Buy Before It Joins Nvidia, Apple, and Alphabet in the $3 Trillion Club

By Danny Vena, CPA – Feb 16, 2026 at 3:02AM ESTKey PointsThe need for high-performance semiconductors has surged in recent years.Taiwan Semiconductor dominates the market for advanced chips, and its customers are among the biggest names in tech.Despite its crucial role in AI, high-performance computing, and data centers, the stock remains attractively priced. These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: TSMTaiwan Semiconductor ManufacturingMarket Cap$1.9TToday's Changeangle-down(-0.47%) $1.74Current Price$366.36Price as of February 13, 2026 at 4:00 PM ETSemiconductors are the foundation upon which technology is built, and this company is ringing the cash register.There are currently 12 companies that are worth $1 trillion or more, but only three are members of the prestigious $3 trillion club (as of this writing): Nvidia at $4.4 trillion, Apple at $3.7 trillion, and Alphabet at $3.7 trillion. I am convinced that Taiwan Semiconductor Manufacturing (TSM 0.47%), commonly called TSMC, is on the fast track to join this elite fraternity. As the world's largest and most renowned semiconductor foundry, TSMC is a crucial player in the artificial intelligence (AI) and data center buildout, which is driving strong financial and operating results. The company has a market capitalization of $1.9 trillion as I write this, so investors who buy TSMC right now could generate returns of 58% if it secures its membership in the $3 trillion club. Image source: Getty Images. Chips ahoy! TSMC is billed as the world's most advanced chip foundry and the world's largest contract chipmaker. It has a 71% share of the global chip market and produces more than 90% of the most advanced semiconductors, so it's well positioned to capitalize on the current boom. Furthermore, no foundry is as technologically advanced as TSMC. That's why its customers are among the most well-known companies in the world, including Nvidia, Advanced Micro Devices, Arm Holdings, and Apple, among others. Smartphone chips once generated the lion's share of TSMC's revenue. Now, however, advanced chips used for AI, data centers, and high-performance computing top of the list, representing 55% of sales. Enviable financial results TSMC's results illustrate its accelerating growth. In the fourth quarter, revenue of $33.7 billion grew 26% year over year and 2% sequentially, while earnings per American Depository share jumped 35% to $3.14. It wasn't just the top and bottom-line numbers that were impressive. TSMC's gross margin of 59.9% improved 380 basis points, while its operating margin of 50.8% increased 510 basis points. These expanding margins indicate that the company's leverage increases as it scales its foundry operations. Management expects its growth streak to continue. The company is forecasting first-quarter revenue of $35.2 billion at the midpoint of its guidance, representing 38% year-over-year growth. ExpandNYSE: TSMTaiwan Semiconductor ManufacturingToday's Change(-0.47%) $-1.74Current Price$366.36Key Data PointsMarket Cap$1.9TDay's Range$360.77 - $371.1152wk Range$134.25 - $380.00Volume10MAvg Vol13MGross Margin59.02%Dividend Yield0.84% The path to $3 trillion TSMC is in an enviable position as the leading provider of advanced semiconductors and is well-positioned to benefit from the shifting landscape, as many of the biggest names in tech are its customers. Furthermore, TSMC's accelerating revenue growth is a clear indication that the company is poised to profit from this opportunity. This will drive TSMC into the company of multi-trillionaires. Wall Street expects TSMC to generate revenue of $157.8 billion in 2026, giving it a forward price-to-sales (P/S) ratio of roughly 12. Assuming its P/S ratio remains constant, TSMC will need to generate revenue of roughly $250 billion annually to justify a $3 trillion market cap. It's suggestive that analysts are forecasting revenue for TSMC of $193.9 billion and $232.8 billion in 2027 and 2028, respectively. If the company achieves those relatively low hurdles, it will be within striking distance of a $3 trillion market cap sometime in 2029. That said, the company's accelerating growth over the past few years suggests it could get there even sooner. Demand for high-end semiconductors continues to ratchet higher, with annual sales projected to reach nearly $1 trillion in 2026, according to McKinsey & Company. TSMC is seeing strong demand for its leading-edge process technology and expects that paradigm to continue. As a leading provider of advanced semiconductors, TSMC is riding the wave of these secular tailwinds. Despite its recent rise, TSMC stock trades for just 24 times forward earnings. That's why Taiwan Semiconductor Manufacturing is a buy.Read NextFeb 15, 2026 •By Harsh ChauhanPrediction: Artificial Intelligence (AI) Will Drive the Next Wave of Tech Leadership, and This Stock Stands to WinFeb 12, 2026 •By Jennifer SaibilAmazon, Microsoft, and Alphabet Stocks Plummet on AI Investments. These 3 Stocks Are Set to Win.Feb 12, 2026 •By Harsh ChauhanPrediction: This Artificial Intelligence (AI) Stock Will Outperform Nvidia in 2026Feb 12, 2026 •By Leo Sun1 Artificial Intelligence (AI) Winner Hiding in Plain Sight for 2026Feb 11, 2026 •By Justin PopePrediction: This Artificial Intelligence (AI) Stock Will Reach a New All-Time High by End of 2026Feb 10, 2026 •By Jennifer Saibil3 Reasons to Buy Taiwan Semiconductor Manufacturing Stock Like There's No TomorrowAbout the AuthorDanny Vena, CPA, is a contributing Motley Fool technology analyst specializing in artificial intelligence, cloud computing, semiconductors, software, cybersecurity, and consumer electronics. He is a Certified Public Accountant and previously worked as a controller and accountant across small and midsize businesses. Danny also served 13 years in the U.S. Army. He holds a bachelor’s degree in accounting from the University of Phoenix.TMFLifeIsGoodX@dannyvenaStocks MentionedTaiwan Semiconductor ManufacturingNYSE: TSM$366.36 (0.47%) $1.74AlphabetNASDAQ: GOOGL$305.72 (1.06%) $3.28AppleNASDAQ: AAPL$255.98 (2.20%) $5.75NvidiaNASDAQ: NVDA$182.81 (2.21%) $4.13Advanced Micro DevicesNASDAQ: AMD$207.19 (+0.61%) $+1.25AlphabetNASDAQ: GOOG$306.02 (1.08%) $3.35Arm HoldingsNASDAQ: ARM$125.11 (+2.39%) $+2.92*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.