As the stock market rally continues, the trillion-dollar market cap club stands to get just a bit more crowded. Undoubtedly, more than a handful of mega-cap titans could pass the $1 trillion milestone as soon as 2024. And many of the top plays don’t need to skyrocket by an absurd amount to accomplish the feat.
Indeed, sporting a market cap north of a trillion isn’t as big anymore. Though some may view the level as entering the advanced stages of the corporate lifecycle, I’d argue that there’s nothing really stopping a $1-3 trillion company from getting even bigger. Just look at Nvidia (NASDAQ:NVDA) stock, which is currently going for $2.25 trillion. It’s growing at an astonishing rate. And it may not be so quick to pull the brakes.
In any case, the race past the trillion-dollar level is on for a number of firms. And the following three could be next in line to make the big jump!
Berkshire Hathaway (BRK-B, BRK-A)
Berkshire Hathaway (NYSE:BRK-B, BRK-A) has always been about building wealth prudently over the long term. With a market cap sitting at $901.9 billion, Warren Buffett’s empire can casually stroll past the $1 trillion mark without needing to shock and awe for its coming quarters. Good enough may be just enough to help Berkshire make the move.
Indeed, it may be just a matter of time before the conglomerate pushes past the level. Frankly, I’d be quite surprised if it doesn’t do so by this time next year, given how well business has been going across the board.
Sure, not every part of Berkshire is firing on all cylinders. BNSF—a Berkshire-owned railway— isn’t coming in like a freight train quite yet. But, the rail industry is showing signs of heating up in recent months. As things under the hood improve, perhaps a long-term position is warranted here. Just don’t “play” the stock on earnings. Hold it for years (or decades), the way I believe Berkshire was meant to be invested in!
Further, Berkshire’s big bite on Apple (NASDAQ:AAPL) hasn’t done a lot in the past two years. Either way, I wouldn’t dare bet against Berkshire as it looks to make higher highs and push closer to a historic milestone that should make Warren Buffett very proud.
Novo Nordisk (NVO)
With a market cap of $571.4 billion, Novo Nordisk (NASDAQ:NVO) really needs to sprint if it’s to be the next to hit the $1 trillion market cap milestone. Fortunately, the company’s big bets on GLP-1 weight-loss drugs could help increase the company’s market cap.
Indeed, Ozempic and Wegovy have been the talk of the town in recent quarters. It has potential to one-up its current line of GLP-1 drugs while setting sights on other lucrative growth areas, like heart disease.
With the company’s latest acquisition of biotech Cardior Pharmaceuticals for a deal that could be worth up to $1.1 billion, Novo Nordisk seems to be well on its way to making a run for a $1 trillion market cap. Perhaps GLP-1 drugs may be enough to help NVO be one of the next firms to make the leap.
Be warned, though, that expectations ahead of coming quarters look rather high going into the coming quarter. My take? Don’t place a bet without doing your homework, as a quarterly flop could be costly after Novo Nordisk’s latest rally.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a $611.1 billion company that could soon flirt with a $1 trillion market cap. The semiconductor industry has really taken off, with generative artificial intelligence (AI) acting as a tailwind that will be tough to match.
It’s not just semiconductor tailwinds that could keep Broadcom running strong from here. The company is doing a fantastic job of seizing the opportunity in AI infrastructure.
Just last week, analysts at TD Cowen upgraded AVGO stock to outperform (from market perform) following a big AI event that I take had more than just one analyst convinced in the firm’s growth plans from here.
Despite more than doubling (rising around 111%) in the past year, AVGO stock has enough gas to continue its rally and send it blazing past the $1 trillion milestone as the epic AI rally continues.
Like Novo, investors probably shouldn’t chase this one, as expectations have climbed higher during the past year. Falling below the $500 billion market cap seems likelier over the near term if a market correction is in the forecast.
On the date of publication, Joey Frenette owned shares of Berkshire Hathaway (Class B) and Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
