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Three Stocks Heading Towards a Trillion-Dollar Valuation by 2035 Three Stocks Heading Towards a Trillion-Dollar Valuation by 2035

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Trillion-Dollar Stocks - 3 Stocks with The Potential to Hit a Trillion-Dollar Valuation by 2035

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The notion of trillion-dollar stocks grows even more appealing in the age of artificial intelligence. Achieving a trillion-dollar market cap is a feat reserved for an exclusive coterie of industry behemoths.

As the global economy evolves and technology reshapes industries, the prospects seem boundless. Several companies stand at the threshold of joining the ranks of tech titans, like Apple and Microsoft. Forecasting such stratospheric growth is inherently intricate, but three companies display traits that could propel them toward this coveted milestone.

Let us delve into the three most promising trillion-dollar stocks that are on their way to triumph in 2024!

Broadcom Corporation (AVGO)

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Broadcom Corporation (NASDAQ:AVGO) emerges as one of the most promising tech stocks set to attain the trillion-dollar market cap status. The stock doubled in 2023 following the companyโ€™s exceptional financial performance and investments in artificial intelligence.

The cornerstone of their prowess lies in semiconductors, with 79% of their revenue stemming from this sector. The companyโ€™s chips power a gamut of devices, from smartphones to WI-FI routers, data centers, and storage solutions. However, the key growth driver has been the companyโ€™s customer silicon chips, meeting the escalating demands of generative AI offerings. This culminated in the companyโ€™s record revenue of $35.8 billion in 2023, fueled by investments in network connectivity for AI deployments.

Broadcom achieved a record adjusted EBITDA margin of 65% in FY23. Furthermore, the company generated $17.6 billion in FCF and delivered a record EPS of $32.98 per share. With the acquisition of VMWare in their arsenal, they anticipate an increase in adjusted EBITDA to $30 billion in the 2024 fiscal year. This cements Broadcomโ€™s position as one of the prime trillion-dollar stocks to procure in 2024 and potentially positions it as a contender for the trillion-dollar club in the making.

Visa Inc. (V)

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Visa Inc. (NYSE:V) emerges as a multinational payments company and one of the worldโ€™s premier payment processors. The company culminated a robust 2023 fiscal year, and the outlook for 2024 remains formidable.

Visa continues to spearhead the payment processing domain. Its robust network seamlessly powers everyday transactions for consumers, businesses, and financial institutions. Their distinctive partnership model, extended through their Visa-branded cards, has fueled their global expansion over the past decade. Additionally, the companyโ€™s brand recognition has established itself as an omnipresent symbol of secure and convenient payments.

In FY23, Visa witnessed an 11% uptick in revenue to $32.6 billion. FCF surged to $19.6 billion, and GAAP EPS increased by 22% year over year. Consumer spending remained resilient despite higher interest rates. The company also sustained robust performance in cross-border transactions, which grew by 20% from the previous year. This is evident in their Q1 FY24 results, with a 16% year-over-year surge in cross-border volume. With the authorization of a new $25 billion share repurchase program, Visa persists as a premier stock for accumulating wealth through 2030.

ASML Holdings (ASML)




ASML Holdingsโ€™ Dominance in Advanced Lithography Systems

The Rise and Reign of ASML Holdings in the Semiconductor Industry

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A Major Player in Advanced Semiconductor Chips

ASML Holdings (NASDAQ:ASML) is at the forefront of the semiconductor industry, playing an irreplaceable role in the development of cutting-edge technology that we rely on in our daily lives. The companyโ€™s specialization in advanced lithography systems is pivotal in the creation of sophisticated semiconductor chips.

Pioneering Extreme Ultraviolet (EUV) Lithography

ASMLโ€™s expertise in extreme ultraviolet (EUV) lithography is unrivaled, setting the bar for the production of small yet powerful semiconductor chips. With exclusive rights to EUV systems, ASML has solidified its position as an indispensable partner to tech giants such as Samsung and TSMC, cementing its status as the third most valuable company in Europe. This dominance is a testament to ASMLโ€™s innovative prowess and unwavering commitment to technological advancement.

Record-Breaking Financial Performance

ASML achieved remarkable financial results in 2023, underscoring its robust position in the market. The company reported record revenue of $27.6 billion, marking a substantial 30% year-over-year increase. Furthermore, ASML maintained strong gross margins at 51.3%, surpassing both internal and external expectations. The companyโ€™s net income also reached unprecedented levels, totaling $7.8 billion, driven by a robust order intake. This stellar performance solidifies ASMLโ€™s standing as a powerhouse in the semiconductor industry.

Paving the Way for Future Growth

While ASML projects its 2024 revenues to align with those of 2023, the company is strategically investing in research and development (R&D) to lay the groundwork for accelerated growth in fiscal year 2025. These proactive measures exemplify ASMLโ€™s forward-looking approach and commitment to sustained innovation, ensuring its continued leadership in the semiconductor landscape.

On the date of publication, Terel Miles 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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.


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