Although investors are still recovering from the 2022 bear market, some stocks have enjoyed impressive growth this year. One of the most reliable winners has been Apple (NASDAQ:AAPL) stock.
Recently, the company captured the world’s attention when it unveiled the Vision Pro VR headset, drawing comparisons to the original debut of the iPhone in 2007. This news quickly sent AAPL stock to a record high price point. The momentum from its recent announcement has been so strong that Apple is dangerously close to reaching an important new milestone: a three trillion-dollar market cap.
As the first company to reach a trillion-dollar valuation, it makes sense that Apple would also be the first to reach $3 trillion. With the tech giant preparing to make market history again, investors should be looking out for the next $3 trillion stocks. As InvestorPlace contributor Larry Ramer reported:
“Certainly, the advent of a few new technologies will make it much easier for more firms to become future $2 trillion companies in the future. Of course, there’s the transition to the cloud, which was the key factor that enabled MSFT’s market capitalization to eclipse $1 trillion, then $2 trillion. Now [artificial intelligence] has become the next, big technology that will propel multiple firms to become the future $2 trillion companies.”
With an AI gold underway, let’s dive into the companies with the best chances of following Apple to the $3 trillion dollar club.
Alphabet (GOOG, GOOGL)
It’s hard to have a conversation about potential $3 trillion stocks without discussing this tech behemoth. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is best known as Google’s parent company, but it has many other lucrative holdings. Most recently, it launched the Bard chatbot, its answer to ChatGPT. While many other companies are working hard to corner the booming AI market, Alphabet has the resources that give it a clear edge over almost all its competitors. On top of that, it also owns both the Google Cloud Platform and YouTube services, two properties that hold a notable share of their markets.
Investors also shouldn’t forget about its quantum computing progress. As InvestorPlace contributor Faizan Farooque reported:
“In a remarkable breakthrough, Alphabet engineers recently announced a milestone achievement in the quantum computing industry. They revealed that their quantum processor has the potential to mitigate common errors associated with quantum computing by scaling up the number of qubits employed in computational processes.”
When a company has both a track record of constant innovations and the vast resources of Google, it seems inevitable that it will ultimately pass the $3 trillion dollar mark and keep rising from there.
If we’re going to talk about Apple and Google, we also have to talk about Amazon (NASDAQ:AMZN). The e-commerce leader has also doubled down on AI innovations. While investors should know that the company has been focused on AI since before the rise of ChatGPT, its recent progress is no less noteworthy. Its Amazon Web Services (AWS) has helped drive growth for years, but now the platform is optimizing AI and machine learning to offer users even more. InvestorPlace contributor Vandita Jadeja notes that during Q1, AWS drove $21.4 billion in revenue.
While AI hype has certainly helped AMZN stock rise in recent months, the company has other positive catalysts that investors should be watching. June 2023 kicked off with the news that Amazon may be launching a low-cost mobile service for members of its Amazon Prime program. That type of hook could lead to a significant influx in subscribers as Amazon rolls out yet another attractive offering. Successfully launching such a venture could send AMZN stock soaring in 2023, putting it well on track to join the small group of $3 trillion stocks, especially if it leverages AI as part of this new product.
BYD Company ()
Some investors might expect to see Tesla (NASDAQ:TSLA) on this list. But the electric vehicle leader has too many red flags to be a viable candidate for the $3 trillion club right now.
However, China’s leading EV producer is making impressive progress while Tesla struggles. BYD (OTCMKTS:BYDDY) doesn’t receive as much media coverage as Tesla, but that doesn’t mean its growth prospects aren’t worth paying attention to. The Chinese auto giant delivered more vehicles than Tesla last year and has demonstrated an impressive ability to withstand severe macroeconomic headwinds.
Additionally, its international presence is only expanding. In his EV industry outlook, InvestorPlace contributor Tyrik Torres noted the following:
“While the EV market in the EU is still dominated by expensive vehicles primarily made by European car companies, Chinese companies like BYD are gaining a foothold in the region. In Germany, shares of imported electric vehicles from China almost quadrupled from more than a year ago, from 8% to 28%.”
Additionally, BYD is working to leverage AI technology by partnering with Nvidia (NASDAQ:NVDA) to pioneer safe, autonomous driving. Its footing in all lucrative submarkets of the EV sector makes BYD another likely $3 trillion dollar candidate, even if its market cap isn’t as large as the other stocks on this list.
On the date of publication, Samuel O’Brient 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.