A $1 trillion market capitalization is quite the accomplishment. Despite Apple (NASDAQ:AAPL) pushing a $3 trillion market cap, the club is fairly exclusive. Now that it’s been done, investors are constantly on the search for the next trillion-dollar companies.
Nvidia (NASDAQ:NVDA) is the latest company in the United States to join the exclusive list. It was able to do so behind an AI-powered surge, as the stock has rallied more than 300% off the October 2022 low.
Along with those already mentioned, it now joins just a few other stocks, including: Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN).
Investors are dying to know which names will be next, and they keep looking for the top companies with trillion-dollar potential.
With that in mind, let’s take a crack at the next trillion-dollar companies.
Next Trillion-Dollar Companies: Tesla (TSLA)
Tesla (NASDAQ:TSLA) was a recent candidate for the next trillion-dollar stock and the latest rally has it that much closer. Shares have rallied in five straight weeks, gaining 60% in that span, while rallying more than 80% from the late-April low to the recent high.
This has driven its market cap to more than $800 billion. Tesla was in the trillion-dollar club once before, so it’s not crazy to think that it could regain entry.
Clearly, the stock has momentum, but more than that, its business has momentum too.
Ford (NYSE:F), General Motors (NYSE:GM) and Rivian (NASDAQ:RIVN) all recently inked new deals with the company to use Tesla’s Supercharger network. Tesla now plans to more than double its number of chargers in the U.S. by 2024, according to Electrek.
Tesla continues to flex its energy capabilities, and while the additional Supercharger network revenue may not be substantial at first, it speaks to Tesla’s position atop the EV industry.
Also, analysts expect the company to continue churning out strong revenue growth throughout the next few years.
Old Faithful: Berkshire Hathaway (BRK-B)
Weighing in as the seventh-largest U.S. stock, Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) may garner some attention for investors looking for the next trillion-dollar companies while not necessarily looking at tech.
The large peak-to-trough declines of the other stocks on this list are a big deterrent for many investors particularly when they know a firm like Berkshire has serious staying power. Led by Charlie Munger and Warren Buffett, this formidable duo has built up a true conglomerate.
Berkshire Hathaway owns a large portfolio of private companies ranging from railways, insurance companies, aerospace and even candies and desserts. At the same time, they have carefully curated a large holding of banks with deals that were not available to other investors, while amassing large positions in some of the most successful companies on the planet.
When will Berkshire hit the $1 trillion mark? It’s hard to say; although, it’s three-quarters of the way there now. Buffett & Co. have built a portfolio that, over time, should get Berkshire to that milestone.
Meta (META)
Given that Meta (NASDAQ:META) sported a $1 trillion market cap before, it’s not crazy to think that it could do so again. The main holdup is the fact that shares suffered a peak-to-trough plunge of 77%, sending its market cap spiraling down to just $166 billion.
While it’s enjoyed a monumental rebound, up 220% from the lows, there’s still a concern about its longevity.
At the same time, the stock became a deep value play as Meta’s valuation plummeted but as the company continued to churn out profit. Admittedly, that profit gyrated quite a bit, but it’s not like this firm started losing billions upon billions of dollars.
It’s still a top-level advertising and social media firm that sports a huge balance sheet and generates strong free-cash flow.
Analysts expect earnings to grow 36% this year to $11.68 a share. That leaves the stock trading at 24 times earnings. This is not as cheap as it once was, but it isfar from expensive for a firm that’s expected to produce double-digit revenue and earnings growth in 2024.
On the date of publication, Bret Kenwell 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.
