2 Brilliant Stocks Could Join Apple, Microsoft, and Nvidia as Trillion-Dollar Companies by 2025

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In July 2014, Apple ranked as the world's most valuable company, with a market capitalization of $550 billion. But during the last decade steady growth in the U.S. economy drove several stocks across the trillion-dollar threshold. Six publicly traded companies are currently members of that elite group, and they are listed below from largest to smallest:

  • Apple: $3.4 trillion

  • Microsoft: $3.2 trillion

  • Nvidia: $2.9 trillion

  • Alphabet: $2.2 trillion

  • Amazon: $1.9 trillion

  • Meta Platforms: $1.2 trillion

Eleven companies are on their way to trillion-dollar valuations, as they're worth at least $500 billion today. But I think Broadcom (NASDAQ: AVGO) and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) could reach that milestone by mid-2025, and certain Wall Street analysts agree:

  • Broadcom is currently worth $732 billion. In July, Hans Mosesmann at Rosenblatt Securities raised his 12-month price target to $240 per share, implying 53% upside from the current share price of $157. That would bring its market capitalization to $1.1 trillion.

  • Berkshire Hathaway is currently worth $936 billion. In May, Brian Meredith at UBS raised his 12-month price target to $490 per share, implying 13% upside from the current Class B share price of $434. That would bring its market capitalization just north of $1 trillion.

To put things in perspective: There's nothing particularly significant about becoming a trillion-dollar company, and the possibility of short-term gains is a poor reason to buy a stock. But Broadcom and Berkshire have more to offer. Here's how these brilliant stocks could fit into your portfolio.

1. Broadcom

Broadcom provides a broad range of semiconductor products and infrastructure software, and the company has a strong presence in several markets. However, Broadcom's three largest opportunities lie in data center virtualization software, networking chips for data center switches and routers, and application-specific integrated circuits (ASICs) for artificial intelligence (AI).

Virtualization software reduces IT costs by making data center hardware more efficient. For instance, physical servers often operate at a fraction of their capacity because each is limited to one operating system and is sometimes dedicated to a single application. Virtualization makes it possible to run multiple operating systems and applications on a single physical server.

Last year, Broadcom acquired virtualization software leader VMware. Restructuring expenses associated with the merger are currently a modest headwind, but the long-term upside should outweigh the near-term downside. The data center virtualization software market is projected to grow at a compound rate of 16% annually through 2030, and Broadcom is focused on upselling customers with its most comprehensive virtualization product, VMware Cloud Foundation.