Prediction: These 3 Stocks Will Be Worth Over $1 Trillion by 2030

You can count on one hand the number of stocks with market capitalizations over $1 trillion that trade on US exchanges. And you would be left with a finger or two.

Apple, MicrosoftAnd Alphabet are all well above the threshold, and Amazon is not too far from the $1 trillion mark. But there are other stocks that could join the exclusive club in the not too distant future. I predict the following three stocks will also be worth over $1 trillion by 2030.

1. Berkshire Hathaway

In my view, Berkshire Hathaway (BRK.A 0.51%) (BRK.B 0.31%) is the obvious first choice to be the next stock with a market cap of $1 trillion. Berkshire currently ranks behind Amazon as the stock closest to the magic number, with its market cap around $674 billion.

How can Berkshire Hathaway add another 50% to its current valuation over the next seven years? One possibility is to put his huge reserve of cash to work. The company continues to buy back its shares a little, which increases the value of the remaining shares. Warren Buffett and his team have also invested in other publicly traded companies, including adding to Berkshire’s stake in four companies in the fourth quarter of 2022.

Berkshire is also benefiting from overall economic growth. Revenues and profits from the company’s insurance, railroad and energy businesses are expected to increase significantly if the economy does well in the coming years. Berkshire’s stock holdings, including Apple, could also help propel its own stock higher.

Buffett’s health is perhaps the biggest potential obstacle to Berkshire’s market capitalization reaching $1 trillion. Many investors are drawn to the stock largely because of the legendary investor mystique. Buffett turns 93 in August. If his health were to fail, Berkshire shares could fall. For now, however, he appears to be in good health and remains actively involved in the business.

2.Nvidia

Nvidia (NVDA -1.60%) stands out as another stock that could realistically reach the $1 trillion market by 2030. The company admittedly has a long way to go to reach the level, with its market capitalization currently around $573 billion. . However, I think Nvidia has what it takes.

Artificial intelligence (AI) actions are hot right now – Nvidia is no exception. While the sizzle may fade temporarily, the long-term prospects for Nvidia’s graphics processing units (GPUs) to power AI applications look very promising. As an example, the company recently announced the launch of an AI-as-a-service product that will be available from all major cloud hosting providers. This new offer will allow any company to use AI.

While AI is Nvidia’s biggest opportunity, it’s not the only one. The company has made a name for itself in the gaming market. Although the game is facing some headwinds right now, they should only be temporary. Other important growth drivers for Nvidia include its Omniverse virtual simulation and collaboration platform and self-driving car technology.

It’s possible that Nvidia’s valuation will hamper its progress towards $1 trillion. The stock already has plenty of growth in the price, with the shares trading at more than 48 times expected earnings. Nvidia may also face increased competition over the next few years. Still, I’d be more surprised if the stock doesn’t have a market capitalization of $1 trillion by 2030 than if it does.

3.Visa

Visa (V -0.71%) may seem a bit long to reach a market capitalization of 1 trillion dollars. The financial services giant isn’t even halfway there right now, with its market capitalization below $454 billion. But don’t overlook the chances of Visa.

Stock prices and market capitalizations tend to follow earnings. All Visa has to do to join the $1 trillion club, it did. The company’s profits have increased by more than 120% over the past seven years. If Visa maintains this trend, it should easily reach a market capitalization of at least $1 trillion by 2030.

I don’t think Visa will have major issues with earnings growth. The company operates one of the two largest payment rails in the world. The shift from cash to digital payments seems like an unstoppable trend. Some have speculated that blockchain could disrupt Visa’s business model. But the company has blockchain fully adopted and could actually be helped more than hurt by technology.

Could something be stopping Visa from hitting the $1 trillion level? One thing that comes to mind is that the company has had a new CEO since February 1, 2023. Successful companies can sometimes stumble after transitions at the top. However, I expect Visa not to take the plunge with a new person at the helm.

Other potential candidates

There are other potential candidates who could also reach market capitalizations of $1 trillion or more by 2030. You’re here, ExxonMobilAnd UnitedHealth Group particularly stand out. But I think Berkshire, Nvidia and Visa seem like the best bets to hit the mark in the next seven years.