Microsoft is only a stone’s throw away from $4 trillion right now, a barrier it has crossed in the recent past. In fact, it could reach that level again by the end of 2026 if one thing happens. <\/p>\n To start the year, investors were uninterested in the stock and heavily sold it off. However, after a strong earnings report, it is back in the game and has recovered from its lows. <\/p>\n Still, Microsoft isn’t valued near the level it used to be at, and trades for 24 times forward earnings. <\/p>\n While 24 times forward earnings isn’t necessarily cheap, it is a lot lower than the low 30s price-to-forward-earnings level it used to trade at. If Microsoft could reach 30 times forward earnings before 2026 is over, that would indicate a gain of 23%. <\/p>\n If its market cap rose by 23%, that would price the company at $4.38 trillion, easily gaining re-entry into the $4 trillion club. That’s well within reach,\u00a0and Microsoft could do it by the end of this year.<\/a> <\/p>\n Amazon is also cheap <\/p>\n Amazon has a catalyst similar to Microsoft’s, as it’s currently trading for 21 times forward earnings, compared to the neighborhood of 30 times forward earnings it normally trades at. <\/p>\n Should Amazon’s valuation rise to 30 times forward earnings, that would result in 44% growth. A 44% higher market cap moves Amazon to $4.05 trillion. <\/p>\n As a result, I think there’s a strong chance that Amazon gets into this club before 2026 is over, but for sure by 2027, since its stock rarely stays beaten down for long<\/a>. <\/p>\n Taiwan Semiconductor has some growing to do <\/p>\n Last is Taiwan Semiconductor (TSMC for short), which doesn’t have the same catalyst that Amazon and Microsoft share — it trades at 25.5 times forward earnings. <\/p>\n As a result, TSMC must grow its way into a $4 trillion valuation. With the company being valued at $2.2 trillion right now, for it to join the $4 trillion club by the end of 2028, it must grow at a compound annual rate of about 28%. Fortunately for TSMC investors, that’s slightly below where it expects to grow. <\/p>\n Wall Street analysts expect it to grow its revenue by 43% for the remainder of this year and a 34% pace next year. Because TSMC is reasonably valued and isn’t dealing with shifting profit margins, investors can assume the stock’s growth will be closely tied to the revenue growth. That positions TSMC well to grow above the required rate and reach a $4 trillion market before 2028 is over. <\/p>\n Should you buy stock in Microsoft right now? <\/p>\n Before you buy stock in\u00a0Microsoft, consider this: <\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Microsoft\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $409,970!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,381,040!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by nearly 5x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of August 19, 2026. <\/p>\n Keithen Drury<\/a> has positions in Alphabet, Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Microsoft is close to regaining entry <\/p>\n
<\/a> MSFT PE Ratio (Forward)<\/a> data by YCharts; PE = price to earnings.<\/a> <\/p>\n
<\/a> AMZN PE Ratio (Forward)<\/a> data by YCharts.<\/a> <\/p>\n
<\/a> TSM PE Ratio (Forward)<\/a> data by YCharts.<\/a> <\/p>\n