The AI driven massive surge in Nvidia Corp has pushed it market cap well above the $3.0 trillion mark.
Meanwhile, these three stocks look ripe to hit their first trillion in valuation. Let’s dive deeper and see what each of these have in store for investors.
Broadcom Inc (NASDAQ: AVGO)
Much like Nvidia, Broadcom is a notable beneficiary of rapid growth in artificial intelligence.
The chipmaker is already up some 70% this year. Still, its management continues to see strength in the coming months. Last week, AVGO guided for $51 billion in revenue for its current financial quarter – handily above Street estimates.
Plus, Broadcom stock is scheduled to split 10-for-1 in July that will make it more accessible for investors. Improved demand will likely translate to a continued upside in its shares and will eventually help the company hit $1.0 trillion in valuation.
Broadcom shares currently pay a dividend yield of 1.27% which makes them all the more attractive for investors.
Visa Inc (NYSE: V)
Visa currently has a market cap that sits under $600 billion. So, it may not be this year that the financial technology company hits $1.0 trillion valuation.
But solid execution and exciting growth rate suggest it could be among the next three companies to eventually achieve that milestone.
Visa took a significant hit during the pandemic as the global travel sector shut down and weighed on cross-border transactions that make up the widest profit margins for the fintech.
But cross-border travel spending is now increasing at an annualised pace of 17%, as per Ryan McInerney – the chief executive of Visa Inc. $V is currently up 7.0% versus the start of 2024 and continued strength in international travel may unlock more upside in it moving forward.
Eli Lilly & Co (NYSE: LLY)
Eli Lilly has gained close to 50% since the start of this year to hit a market cap of well over $800 billion.
But many believe that it’s not out of juice yet particularly because of its GLP-1 antagonist weight-loss treatment – a market that is estimated to be worth $100 billion by 2030.
In late April, LLY reported better-than-expected profit for its first financial quarter and raised its guidance for the full year on solid demand for Zepbound and Mounjaro.
The pharmaceutical behemoth now forecasts its revenue to come in at as much as $43.6 billion in 2024 versus analysts at $41.44 billion. Wall Street continues to rate Eli Lilly stock at “overweight” indicating a path towards $1.0 trillion market cap.
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