As markets prepare for a looming turnaround, investors are redoubling their focus on finding the next trillion-dollar companies. At first glance, it might seem that Tesla (NASDAQ:TSLA) is the most likely candidate for the market’s most elite club. However, the electric vehicle (EV) maker faces significant challenges after reporting disappointing Q1 earnings. As InvestorPlace’s Louis Navellier notes, the company could be on the verge of losing the high valuation that has carried it this far. While it’s possible that it could still join companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) and reach a trillion-dollar market capitalization, there are plenty of other companies that investors should also consider.
That said, many different experts have different takes on the next trillion-dollar companies. Earlier this year, I posed the question to OpenAI’s ChatGPT. As I reported:
“I tasked ChatGPT with identifying the next trillion-dollar company. While the chatbot can’t make direct predictions, it did provide me with a list of companies that it thinks have the potential to reach the trillion-dollar mark. When first asked, it named the sectors that it sees as having trillion-dollar potential: artificial intelligence, healthcare technology, electric and autonomous vehicles, fintech and renewable energy. A few questions later, it named companies from each one that it saw as having the best potential.”
While some of the predictions made by the bot make sense, I saw potential in many other companies that didn’t appear on ChatGPT’s radar. It’s also worth noting that the chatbot’s information isn’t always current, leading to the need for a list of stocks based on current data.
Let’s dive into the firms that also have the potential to reach the trillion-dollar mark before too long. The market is unpredictable, but these companies have enough room to run that a trillion-dollar valuation is a viable outcome.
Next Trillion-Dollar Companies: Airbnb ()
For all the trouble caused by the Covid-19 pandemic of 2020, the travel industry is doing an excellent job bouncing back. With the world opening back up, demand is trending steadily upward. This puts companies like Airbnb (NASDAQ:ABNB) in a great position. The startup that revolutionized the homestay industry is up 43% year-to-date, displaying an encouraging growth trajectory. InvestorPlace contributor Muslim Farooque attributes these gains to what has come to be known as the revenge travel phenomenon, a mentality that encouraged consumers to book vacations despite the pandemic. Now that the global pandemic seems to be behind us, there is nothing stopping consumers from making up for the time they lost between 2020 and 2022.
After ending 2022 with an impressive earnings report, Airbnb is better positioned than ever to continue its upward trajectory. It boasts one of the smaller market caps on this list, currently sitting at $76.51 billion. However, the company is still a travel industry leader that emerged from a global pandemic stronger than ever. Investors shouldn’t underestimate the power of Airbnb to keep climbing steadily, particularly as we shift back towards a travel-centric economy.
Enphase Energy ()
There may be no better company to be on a dip right now than Enphase Energy (NASDAQ:ENPH). This dynamic firm offers investors wide-ranging exposure to the booming clean energy sector, including solar technology, EV charging and battery production. And while a disappointing Q2 sales forecast recently pushed ENPH stock down, investors shouldn’t be worried. This company has more than enough potential to pull back into the green and make up the ground it has lost. It shouldn’t be forgotten that despite its current position in the red, Enphase is still up more than 3,000% over the past five years.
If predictions for the solar energy market prove astute, 2023 will be an excellent year for ENPH stock. As InvestorPlace markets analyst Thomas Yeung notes:
“Enphase’s disappointing outlook has more to do with lower subsidies in a single state, not a broader issue with its products. And with shares hovering under 40X forward earnings, long-term investors might finally have an attractive entry point.”
Put another way, Enphase has been temporarily subdued by forces beyond its control. That doesn’t mean it won’t be among the next trillion-dollar companies. Investors should be careful to see the big picture and recognize its potential to dominate a booming market.
Next Trillion-Dollar Companies: General Motors ()
If you’re seeking exposure to the EV market, General Motors (NYSE:GM) is likely a better long-term bet than Tesla. A beacon of American industry, this legacy automaker’s portfolio includes some of the country’s best-loved brands. This includes names such as Chevrolet, Cadillac, and GMC, to name just a few.
The company recently turned some heads when it announced plans to stop producing the Chevy Bolt, the market’s least expensive EV. However, investors shouldn’t be worried. GM has decided that the Bolt doesn’t fit into its long-term growth plans and is focused on the bigger picture, which doesn’t include slowing down.
As InvestorPlace contributor Josh Enomoto reports, General Motors has a clear competitive edge in its ability to electrify already popular auto brands. We’ve already seen it work well with the release of the Hummer EV, which helped remind investors that GM should be ranked among the top EV stocks. Enomoto also notes that the company’s recent earnings are highly encouraging, as is Wall Street’s increasingly bullish attitude toward GM stock. Morgan Stanley analyst Adam Jonas recently upgraded it to a “buy” rating and increased his price target from $35 to $38. The company may be shifting gears slightly, but all the important signs point toward an excellent future in which a trillion-dollar market cap would not be out of reach.
LVMH Moët Hennessy Louis Vuitton (LVMUY)
No list of the next trillion-dollar companies would be complete without the biggest name in luxury goods. LVMH Moët Hennessy Louis Vuitton’s (OTCMKTS:LVMUY) name reveals just a few of the iconic brands in its portfolio. The French conglomerate has been volatile recently, but its stock has displayed impressive growth, more than doubling in value over the past two quarters.
Early in 2023, InvestorPlace contributor Will Ashworth speculated that LVMUY could easily outperform most U.S. stocks over the coming year. Nearly five months in, his prediction is proving correct so far, with the stock rising 30% year-to-date. As Ashworth notes, the company saw both revenue and profit increase in 2022 while the bear market pushed down many U.S. companies.
As the global economy continues its gradual turnaround, LVMH is well-positioned to continue its upward trajectory. Its portfolio of highly-priced name-brand companies is impressive, spanning many of the best-known names in fashion, cosmetics, and fine wine and spirits. The company is also constantly adding new names, making it clear that it is focused on growth. As InvestorPlace contributor Alex Sirois notes, the company has even expanded into middle-class markets. The fact that it can gain a footing among new consumer groups without losing its status as a seller to society’s elite is noteworthy, mainly because it shows there are few worlds this company can’t conquer, earning it a place among the next trillion-dollar companies.
I have to agree with ChatGPT that this tech sector powerhouse has the potential to join the trillion-dollar club. AI enthusiasm recently took Nvidia (NASDAQ:NVDA) to a high for the year, but that’s only a small part of what makes this Silicon Valley darling worth betting on. Nvidia builds the high-powered microchips that fuel the AI and metaverse booms that are redefining the tech and gaming sectors. The company has positioned itself perfectly as a pillar upon which this new age of technology is being built, carving out a share of two markets with significant potential. Open.AI can even credit Nvidia with supplying the supercomputer that helped give rise to ChatGPT. As Enomoto reports:
“Since the January opener, NVDA gained over 90% of its equity value, a remarkable statistic. Also, in the trailing one-year period, it moved up nearly 38%. Financially, Nvidia benefits from excellent stability, as evidenced by its stratospheric Altman Z-Score of 22.77. Basically, we’re talking about a highly resilient enterprise with an extremely low risk of bankruptcy.”
If any company has the potential to ride the AI wave to a trillion-dollar market cap, it is Nvidia. And with a market cap of almost $700 billion, it is coming dangerously close to exactly that. It may be the first of the stocks named here to reach that goal. Even at its current high levels, NVDA has plenty of room to grow.
Next Trillion-Dollar Companies: PayPal (PYPL)
It hasn’t been an easy start to the year for this mobile payment leader. But that doesn’t mean investors should disregard the significant growth potential that comes with PayPal (NASDAQ:PYPL). The stock boasts highly favorable status on Wall Street, with 31 analysts currently rating it as a “buy.” As InvestorPlace contributor Bret Kenwell notes: “…the consensus target suggests 62.5% upside potential.” The stock currently boasts an impressive 76% institutional ownership, indicating that hedge funds are firmly convinced that it will be a winner in the coming years.
Aside from its global popularity and strong presence as a tool for businesses, PayPal’s technology also has applications in the blockchain and crypto spaces. Its embrace of decentralized finance (DeFi) has helped it gain a share of a new market with significant potential. Farooque notes that it ended 2022 with crypto holdings that totaled $604 million, which stand to increase in value as crypto markets rebound. They could easily be worth even more, as that number reflects a past report, and markets have already entered Q2.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) is the type of company it’s difficult not to have faith in. The multinational consumer goods giant is nothing if not reliable, consistently delivering the kind of dividends that investors want to see. As the largest company in the consumer goods sector, P&G has a footing in many industries, producing just about every product that people need. Its holdings include leading brands in homecare, childcare, haircare and many more. If you need something that doesn’t fall into the food or drink categories, Procter & Gamble probably owns a leading company that makes it.
After taking a dip early in the year, PG stock has recovered nicely and is back firmly in the green. Sirois suggests that because the company is “not overpriced based on earnings,” this is a great time to make a bet on it. He also notes that the company stands to benefit from the rising consumer staple prices that have pushed some companies down.
Procter & Gamble has carved out a reputation as a dependable apocalypse stock to buy when times are bad. But its market share is big enough that it can rise in good times as well. People will always need the products it sells, regardless of how the economy is doing. This puts it in an excellent position to join the next trillion-dollar companies.
Next Trillion-Dollar Companies: Salesforce ()
While Salesforce (NYSE:CRM) is coming off a difficult month, investors shouldn’t ignore its progress over the past six. CRM stock is up more than 32% over the past two quarters and looks ready to keep trending upward. This is especially encouraging as investors have been nervous about entering the tech sector of late due to highly volatile markets. However, Salesforce is an industry-leading company whose recent declines should offer investors a valuable opportunity to double down on shares before it bounces back even further. Its clever trading symbol is also an acronym for customer relations management, a type of software that almost every business needs. That demand isn’t going to go away anytime soon.
However, Salesforce has also been hailed as a winner among cloud computing companies. This means it can offer investors exposure to a booming area of the tech sector. The cloud computing sector is “expected to expand at a compound annual growth rate (CAGR) of 14.1% from 2023 to 2030.” If that is true, Salesforce can expect to see significant gains as companies continue their reliance on its technology and its share of the enterprise software market grows even more.
Taiwan Semiconductor (TSM)
Taiwan may be facing geopolitical tensions right now, but one of its leading manufacturers remains red hot. Taiwan Semiconductor (NYSE:TSM) boasts a truly impressive market share that passed 57% in 2021. Like Salesforce, TSM has fallen over the past month but risen steadily over the past six, demonstrating an ability to withstand turbulent markets. The global chip shortage posed severe complications, but Taiwan Semiconductor has continued expanding its global presence, reminding investors of its power in a sector that will only grow as the AI boom continues. InvestorPlace contributor Chris MacDonald has speculated that it could potentially overtake Nvidia. In his words:
“Taiwan Semi has what it takes to continue to grow its dominance in the chip sector globally. This is a company with a nice mix of chips, used in a wide range of industries. And as the company introduces its 3 nanometer chips this year, and 2 nanometer chips in 2025, I think the company has much to gain in this race. There’s a reason why so many investors are confident in TSMC’s future. I’m one of them.”
While the possibility looms that tensions between Taiwan and China could negatively impact the company, all other signs are highly encouraging. As Enomoto notes, it is an undervalued blue-chip stock with plenty of room to grow as markets rebound.
Next Trillion-Dollar Companies: Visa (
This credit card giant made Ashworth’s list of what could be the next trillion-dollar companies. While he notes that Visa (NYSE:V) would need to more than double its market cap to reach the trillion club, he sees it as a possibility. The company’s gains for the year have been modest but have also been steady. And since consumer spending isn’t going to stop or even die down in the near future, Visa has more than enough room to run and continue trekking upward. It recently introduced Visa+, a new service that can potentially push shares up in the long term if it takes off. This program includes partnerships with PayPal and trendy mobile payment leader Venmo.
Like PayPal, Visa is benefitting from its transition into the fintech space. And while it has taken some time for shopping to return to post-pandemic levels, travel is returning. As noted, Airbnb is enjoying the return of vacation culture, but Visa is well-positioned to ride that wave as well. It may be a slow ride back to the top for this credit card company, but as Ashworth lays out, it has the potential to join the trillion-dollar club in less than a decade if it can continue its growth, sooner if it sees improvements in certain areas.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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