The artificial intelligence (AI) rush is seemingly tilted toward the big technology companies with the deep pockets to outspend everyone ... except one another. Thus, the race is on among them to establish themselves in this exciting new industry.
The "Magnificent Seven" continue to obliterate the broader stock market, soaring to, in most cases, over a trillion-dollar valuation each.
While there could be some pullbacks along the way, five of these big-time tech stocks have the individual growth opportunities to grow to and beyond a $2 trillion valuation over the coming months and years:
NASDAQ: TSLA
Key Data Points
1. Tesla
Electric vehicle (EV) leader Tesla (TSLA +0.53%) has built a company worth over $640 billion on EV leadership. But CEO Elon Musk's ambitious artificial intelligence goals for full self-driving (FSD) technology and humanoid robotics are what could drive Tesla's stock to new heights over the coming years. FSD technology would make a robotaxi business possible. Additionally, humanoid robots would potentially replace many millions of human laborers.
When you combine that long-term potential with a rock-solid base EV business that still has years of growth left (EVs are just about 1% of active passenger vehicles in America), it's easy to envision a company several times larger than its current state. That makes Tesla a prime candidate to grow to $2 trillion eventually.
2. Meta Platforms
Social media giant Meta Platforms (META +0.40%) has grown to $1.2 trillion on the back of an advertising business that is still growing at a very healthy clip. CEO Mark Zuckerberg's commitment to augmented reality, Meta's Reality Labs unit, could be the long-term cherry on the sundae. Meta has already unleashed AI for advertisers on Meta, but Reality Labs is working to establish dominance with its Quest headsets, fighting for a post-smartphone future.
As it is, Meta is poised to grow earnings by an average of 20% annually over the next three to five years. However, a financial return on Reality Labs, which currently loses billions of dollars annually, could completely change Meta's long-term trajectory.
NASDAQ: NVDA
Key Data Points
3. Nvidia
AI chip leader Nvidia (NVDA +2.71%) has already flirted with a $2 trillion market value, so the company's ascension beyond the milestone feels inevitable. Nvidia's combination of hardware quality and software has created a turn-key product that customers can quickly deploy for cutting-edge performance. Some analysts estimate Nvidia's AI chip market share as high as 90%.
It's unclear whether Nvidia will maintain this momentum, though its recent growth performance has been astonishing. But even if competition eventually begins taking nibbles of Nvidia's pie, the long-term AI opportunity seems large enough that Nvidia's footprint is bound to make it a solid bet to settle in at a valuation north of $2 trillion at some point.
4. Amazon
As the world's leading cloud platform and de-facto e-commerce leader in America, Amazon (AMZN +0.20%) is already close to a $2 trillion valuation. But once again, it's not about touching the ceiling, it's about breaking through it. Amazon has the long-term catalysts to accomplish that. Amazon is weaving AI technology into its cloud business, Amazon Web Services, to give customers an ecosystem they can build on.
Amazon is poised to continue years of solid earnings growth. Analysts are looking for an annual average of 28% earnings growth over the next three to five years. That happens when you lead multitrillion-dollar opportunities like cloud computing and e-commerce. Investors can buy and hold and enjoy the long-term ride.
NASDAQ: GOOGL
Key Data Points
5. Alphabet
Another company near the $2 trillion mark, internet giant Alphabet (GOOGL +2.81%) (GOOG +2.66%), is still figuring some things out. The company competes with OpenAI's ChatGPT on generative AI with its version, Gemini. However, the model was recently criticized for how it interpreted specific prompts. That should get straightened out over time and doesn't negate the fact that Alphabet's Google and YouTube dominate global search and are the world's most trafficked websites by a wide margin.
Similar to Meta, Alphabet can deploy AI throughout its consumer-facing products and use it to optimize advertising for brands and customers. Analysts expect Alphabet's earnings to grow by an average of 16% annually over the next three to five years, making a $2 trillion market cap seemingly a matter of time.
