The biggest of the big keep getting bigger. That's been the story for the stock market in recent years. The so-called "Magnificent Seven" stocks now have a combined market cap of over $21 trillion.
I suspect this trend will continue. I'll even step out on a limb and make a prediction: Each of these five stocks will be worth more than $8 trillion by 2030.
Image source: Getty Images.
1. Nvidia
Nvidia (NVDA 1.81%) is the easiest pick to join the $8 trillion club within the next five years. The chipmaker's market cap already stands at $4.3 trillion. Nvidia would need to deliver average annual returns of slightly above 13% to reach a valuation of $8 trillion.
In my view, two things need to happen for Nvidia to hit this threshold. First, the company must maintain its lead in the GPU market. Second, the demand for AI chips must continue to grow. I think these prerequisites will be met.
NASDAQ: NVDA
Key Data Points
Sure, Nvidia faces challengers. However, I agree with the company's recent post on X that it's "a generation ahead of the industry." As for the demand for AI chips, I believe we're still in the early stages of growth.
2. Apple
Anyone who thought that Apple (AAPL +0.46%) would be left behind in the dust might be reconsidering their opinion now. The iPhone maker's shares have rebounded strongly since April. Apple's market cap now tops $4 trillion.
Can Apple really double its valuation by the end of the decade? I think so. The company more than doubled its market over the last five years. I predict that Apple will be able to do it again.
NASDAQ: AAPL
Key Data Points
A sustained iPhone upgrade super cycle could be just what Apple needs to reach a market cap of $8 trillion by 2030. A rumored foldable iPhone would likely push many customers to upgrade their phones. Expanded generative AI functionality could also help. However, I think a launch of top-tier smart glasses that integrate with new iPhone models is the most likely catalyst for a multi-year upgrade super cycle.
3 and 4. Alphabet
Alphabet (GOOG 0.05%) (GOOGL +0.06%) takes the No. 3 and the No. 4 spots on the list because the tech giant has two share classes. With a current market cap of around $3.8 trillion, Google's parent company isn't far behind Apple.
Google Cloud is Alphabet's fastest-growing unit. As such, it's the most important driver to push the company to a market cap of $8 trillion by 2030. The same AI demand that will serve as a major tailwind for Nvidia will also benefit Google Cloud.
NASDAQ: GOOGL
Key Data Points
But I expect Alphabet's advertising revenue and profits from Google Search, YouTube, and other apps will also grow significantly over the next five years. The company has two potential lottery tickets as well. Its Waymo unit is the leader in autonomous ride-hailing and has tremendous growth prospects. Google Quantum AI could open up a massive opportunity for Alphabet in quantum computing.
5. Microsoft
Not long ago, Microsoft (MSFT +1.34%) reigned as the largest company in the world. It no longer holds that position, but it is within striking distance, with a market cap of $3.6 trillion.
The obvious path for Microsoft to get to $8 trillion is for the AI boom to continue unabated. Microsoft's Azure cloud platform would be a huge beneficiary from this trend. I think agentic AI presents an especially significant opportunity for Microsoft, both for Azure and the company's productivity software suite.
Don't overlook Microsoft's potential in quantum computing. If the company's topoconductors – a new type of material that isn't a solid, liquid, or gas, but is instead a topological state – fulfill their potential, Microsoft could become one of the biggest quantum computing winners.
