Apple (NASDAQ:AAPL) became the first company to reach the trillion-dollar milestone. A few years later, Apple had company. Most Magnificent Seven stocks have valuations exceeding $1 trillion, and other stocks look poised to join them.
The $1 trillion valuation implies sizable gains for the investments on this list. The jump may require a 30% to 50% increase for these promising tech stocks. Some of them have the potential to become trillion-dollar stocks by the end of the year, while others may reach the milestone by 2030.
These are some of the top tech stocks set to join the trillion-dollar club.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is the easiest choice on this list. The semiconductor giant has the largest market cap of these picks and comes in with a $633 billion market cap. The company’s 50 P/E ratio and artificial intelligence (AI) tailwinds can give it the extra momentum it needs to attain trillion-dollar status.
The stock is surrounded by enthusiasts, as it is currently rated a Strong Buy. The lowest price target still implies some upside, while the average price target indicates a 16% gain is in the cards. The highest price target of $1,720 per share suggests the stock could gain an additional 26% from current levels.
Broadcom’s recent acquisition of VMware has already translated into higher revenue growth. Revenue increased by 34% year-over-year (YoY), and the company believes it can exceed $50 billion in fiscal 2024 revenue. The corporation helped itself toward this goal by repurchasing $8.29 billion worth of shares.
Visa (V)
Visa (NYSE:V) is a fintech company that offers credit and debit cards. The company makes a small percentage of every credit and debit card transaction. Many investors use Visa’s financial reports as an indicator of broader U.S. economic performance.
Visa gave its investors and broader market participants reasons to cheer in its latest earnings report. Revenue increased by 9% YoY in the first quarter of fiscal 2024. GAAP net income was up by 17% YoY, reaching $4.9 billion. Those growth rates helped the company bring in a 56.6% net profit margin.
Visa stock is up by 76% over the past five years and has momentum on its side. The stock is up 7% year-to-date and 21% over the past year. The stock trades at a $572 billion market cap, more than halfway toward the trillion-dollar milestone. Visa shares trade at a 32 P/E ratio and offer a 0.75% yield.
Adobe (ADBE)
Adobe (NASDAQ:ADBE) would have to more than quadruple to reach a $1 trillion market cap, so investors will have to be very patient with this one. The stock has a $224 billion market cap and a 48 P/E ratio. Shares are up by 86% over the past five years.
Adobe generates recurring revenue from its popular software products. Creatives and businesses use Adobe’s products to create captivating graphics and videos. The company’s video editing tools are some of the best in the industry.
Adobe recently reported Q1 fiscal 2024 results. Revenue reached a record $5.18 billion. That’s 11% higher than the same period last year. Diluted EPS came to $1.36 on a GAAP basis. Adobe closed the quarter with $17.58 billion in remaining performance obligations, a healthy backlog. The company tapped into its financial strength to repurchase 3.1 million shares in the quarter.
On this date of publication, Marc Guberti held a long position in AVGO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
