There are only a few stocks that are worth $1 trillion dollars and are traded on US markets and to be precise, you can count them on one hand, and still have some fingers left over.
Apple, Microsoft, and Alphabet are all firmly above the $1 trillion level, and Amazon isn’t far behind.
Other stocks, though, could join the exclusive club in the not-too-distant future and I believe the following three stocks will be worth more than $1 trillion by 2030.
Berkshire Hathaway, Inc.
Berkshire Hathaway (BRK.A) is the clear favorite to be the next trillion-dollar stock valuation with a market cap of about $674 billion, Berkshire comes second only to Amazon as the stock closest to the magic number.
How can Berkshire Hathaway increase its present worth by 50% over the next seven years?
One option is to put its massive cash reserves to use.
The corporation continues to purchase back a significant amount of its shares, increasing the value of the remaining shares.
Warren Buffett and his staff have also made investments in other publicly traded companies, including increasing Berkshire’s interest in four firms in the fourth quarter of 2022.
Berkshire Hathaway benefits from overall economic growth as well.
If the economy performs well in the coming years, revenue and profits for the company’s insurance, railroad, and energy divisions should rise significantly.
Berkshire’s equity holdings, which include Apple, might also help boost its own stock upward.
Buffett’s health is perhaps the most significant potential impediment to Berkshire’s market cap exceeding $1 trillion and many investors are drawn to the stock in part because of the mythology of the investor.
Buffett will be 93 years old in August. Berkshire stock might plummet if his health fails and for the time being, he appears to be in good health and remains active in the organization.
Nvidia is Second
Nvidia (NVDA) is another stock that has the potential to be a trillion-dollar stock by 2030.
The corporation has a long way to go to reach that level, with a market cap of roughly $573 billion.
Nvidia, on the other hand, I believe has what it takes.
Stocks in artificial intelligence (AI) are soaring right now, and Nvidia is no exception.
While the initial excitement may fade, the long-term possibilities for Nvidia’s graphics processing units (GPUs) in powering AI applications appear highly promising.
As an example, the company recently announced the availability of an AI-as-a-service solution across all major cloud-hosting providers. This new offering will make AI available to any organization.
While AI is Nvidia’s most promising possibility, it is not the only one.
The company rose to prominence in the gaming industry. Although gaming is currently facing headwinds, these should only be temporary.
Nvidia’s Omniverse virtual collaboration and simulation platform, as well as its self-driving car technology, are also key growth drivers.
It’s feasible that Nvidia’s value will stymie its march to $1 trillion.
With shares trading at more than 48 times projected earnings, the company already has a lot of upsides built in.
Nvidia may also face increasing competition in the coming years.
Even so, I’ll be astonished if the stock doesn’t have a $1 trillion market cap by 2030.
Visa is Also Possible
Visa (V) may appear to be a long shot to be a trillion-dollar stock.
With a market worth of less than $454 billion, the financial services behemoth isn’t even halfway there yet but don’t write out Visa’s possibilities.
Earnings tend to drive stock prices and market capitalization.
All Visa needs to do to enter the $1 trillion club is continue doing what it has been doing.
Over the last seven years, the company’s earnings have climbed by more than 120%.
If Visa continues on this path, it should easily reach a market capitalization of at least $1 trillion by 2030.
I don’t believe Visa will have significant earnings growth issues.
One of the world’s two largest payment rails is operated by the firm and the transition from cash to digital payments appears to be inevitable.
Others believe that blockchain will challenge Visa’s business model.
Nonetheless, the corporation has completely embraced blockchain and may benefit from it rather than harm it.
Is there anything that might stop Visa from reaching $1 trillion? One thing that comes to mind is that the corporation will have a new CEO starting on February 1, 2023.
Transitions at the top can cause successful organizations to stumble. Yet, I believe Visa will not miss a beat with a new CEO at the helm.
Other Possible Candidates
Several probable alternatives may also have market capitalizations of $1 trillion or more by 2030.
Tesla, ExxonMobil, and UnitedHealth Group stand out in particular.
Nonetheless, Berkshire Hathaway, Nvidia, and Visa appear to be the most excellent bets to hit the milestone within the next seven years.
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