Apple (NASDAQ: AAPL) has long been at the top of the world’s most valuable companies, or at least close to it. The iPhone maker became the first company in history to reach a $1 trillion market cap in 2018. Today, there are six investable companies with a market cap of $1 trillion or more.

However, two more companies are knocking on the door of the $1 trillion club, and Apple could be a big reason why they join the group in the near future. Warren Buffett’s Berkshire-Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and chip manufacturers Semiconductor manufacturing in Taiwan (NYSE:TSM)better known as TSMC, could get a boost from Apple to get them over that milestone.

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Warren Buffett’s largest stock holding

Berkshire Hathaway holds a stock portfolio worth around $300 billion. Around 29 percent of this, or $88 billion, is invested in Apple. This is despite some significant sales of the Oracle of Omaha in the last three quarters, including around half of Berkshire’s stake in the second quarter.

Apple remains a favorite investment of Buffett’s. Despite the stock sales, he has every intention of keeping Apple the largest holding in Berkshire’s portfolio for the foreseeable future. In 2023, he called Apple “a better company than any other we own,” referring to the portfolio of wholly owned subsidiaries that make up the Berkshire Hathaway conglomerate.

As long as Berkshire’s stake in Apple remains unchanged (which is by no means guaranteed), even a relatively small increase in Apple’s stock value can add billions to Berkshire’s market capitalization. The conglomerate already has a market capitalization of nearly $950 billion. A strong performance by Apple stock in the second half of the year could push its value to $1 trillion.

Berkshire Hathaway stock currently has a price-to-book ratio of 1.6 and a forward price-to-earnings (P/E) ratio of 19.4. Both are fair prices for a conglomerate full of companies with above-average growth prospects. Given Buffett’s consistent share buybacks, massive equity and treasury holdings, the prices look even more attractive.

An important supplier for Apple

Since the release of the iPhone in 2007, Apple has been designing more and more of the silicon chips for its devices itself. Not only is the company designing more stuff for the iPhone itself, but it has expanded its own designs to all of its growing devices, including Macs. And the company that makes those chips for Apple, TSMC, is a major beneficiary of Apple’s push to develop more of its own silicon chips.

TSMC could get an additional boost this fall. Apple unveiled Apple AI at its Worldwide Developers Conference in early June. Many Apple fans and analysts are excited about the new AI features, but there are some important details to know.

First, Apple AI is only available on the latest iPhone 15 Pro and Pro Max. It will also be available on the upcoming iPhone 16 lineup. That could trigger a strong upgrade cycle compared to previous years. Strong iPhone sales mean strong sales for TSMC. Despite recent growth due to AI chip production, smartphone chips still accounted for a third of revenue in the second quarter, when smartphone sales are typically slower. A surge in demand for Apple’s smartphone chips toward the end of the year could significantly boost the company’s revenue.

Second, some of Apple’s AI features rely on secure data transfer to Apple servers to process AI prompts and requests. Apple also uses its own chips on these servers. While Apple’s needs may be modest at launch, there is potential to grow quickly, especially if Apple opens the protocol to outside developers. That could drive demand for TSMC chips even higher.

If TSMC gets a big revenue boost from the successful launch of the iPhone 16 and Apple AI, it could push the company to a $1 trillion market cap. The stock currently has a market cap of around $850 billion, but has recently flirted with a trillion-dollar market cap. The current drop seems to be a great buying opportunity for the stock.

Should investors simply buy Apple shares?

Although both of the above companies have close ties to Apple, investors may wonder if it makes more sense to buy Apple stock directly. Certainly, Apple stock looks attractive at current prices despite a P/E ratio of 29.5. The stock arguably deserves a premium thanks to its strong cash position and the generation of free cash flow that management uses to buy back shares. This provides a nice increase in earnings per share over time.

However, Berkshire Hathaway offers investors access to Warren Buffett’s entire portfolio of different companies, including those wholly owned by the conglomerate. Meanwhile, TSMC is one of the smartest ways to invest in the growing demand for AI chips, as it is the largest chipmaker in the world and produces the most cutting-edge chip designs.

All three meet a specific investor need and there is nothing wrong with buying them all.

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Adam Levy holds positions in Apple and Taiwan Semiconductor Manufacturing. The Motley Fool holds positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.