Investors will always be on the hunt for the next trillion-dollar companies. This is a milestone that every company aims for, though very few reach. For investors, this means constantly being on the lookout for innovators with revolutionary products that can take them to market capitalizations above $1 trillion.
As InvestorPlace analyst Luke Lango notes, in 2022, the iPhone helped Apple (NASDAQ:AAPL) reach that milestone and become the world’s most valuable company with a market cap above $2 trillion. Plenty of experts have made predictions as to what the next trillion-dollar whale will be. But I wanted to hear what ChatGPT has to say about it.
Very much a revolutionary product itself, ChatGPT has proven apt at many things, including researching any number of topics and providing detailed information on them. This includes investing and stock selection. As InvestorPlace Financial News Writer Brenden Rearick reports:
“InvestorPlace has tasked ChatGPT time and again with selecting high-growth assets across the stock market and crypto world. The chatbot, while not necessarily up-to-date on stock market news, possesses a keen quantitative analysis skill…”
With this in mind, I tasked ChatGPT with identifying the next trillion-dollar company. While the chatbot can’t make direct predictions, it did provide me with a list of companies that it thinks have the potential to reach the trillion-dollar mark. When first asked, it named the sectors that it sees as having trillion-dollar potential: artificial intelligence, healthcare technology, electric and autonomous vehicles, fintech and renewable energy. A few questions later, it named companies from each one that it saw as having the best potential.
Let’s take a look at what ChatGPT thinks will be the next trillion-dollar companies.
Amazon (AMZN)
With a market cap of $970 billion, Amazon (NASDAQ:AMZN) is dangerously close to hitting $1 trillion. ChatGPT touts the e-commerce giant for its wide-range applications across many sectors. It specifically highlights Amazon’s recent investments in AI and robotics, making it clear that it sees this emerging market as the company’s ticket to a trillion-dollar valuation. This includes a recent partnership with AI startup Hugging Face, which offers Amazon exposure to a lucrative new section of the AI field. As the bot states:
“As the company continues to expand into new markets, such as healthcare and advertising, and invest in emerging technologies like artificial intelligence and robotics, it could potentially continue to grow and reach a $1 trillion valuation.”
NextEra Energy (NEE)
ChatGPT clearly recognizes the power and potential of the renewable energy sector. NextEra Energy (NYSE:NEE) is one of the field’s leaders, with vast holdings and an impressive market share. ChatGPT definitely sees it as a great play among clean energy companies. As it states:
“NextEra Energy is already one of the world’s largest producers of wind and solar power, and its focus on renewable energy and sustainability could help it continue to grow and reach a $1 trillion valuation.”
Additionally, the company is ranked as a winner among dividend stocks and carries significant appeal for less risk-averse investors. All this bodes well for its future as a potential trillion-dollar winner.
Moderna (MRNA)
Moderna (NASDAQ:MRNA) enjoyed a race to the top during the Covid-19 vaccine rush, securing its place among pharmaceutical winners. Now, ChatGPT believes it has trillion-dollar potential due to its applications in healthcare technology. While the bot did not get specific in its reasoning, it provided the following breakdown:
“Moderna is a biotechnology company that has gained significant attention and market value during the COVID-19 pandemic due to its successful development of an mRNA vaccine. As the company continues to develop and commercialize other mRNA-based treatments, it could potentially reach a $1 trillion valuation.”
It’s also worth noting that ChatGPT considers MRNA to be a meme stock. When Rearick asked it for a list of the best meme stocks to buy, its top 10 picks included Moderna. That said, this categorization is likely due to 2021 data, as during that year the stock made many headlines.
Nvidia (NVDA)
It’s not surprising that this AI standout would be ranked among future trillion-dollar winners. A Silicon Valley darling with wide-ranging applications, Nvidia (NASDAQ:NVDA) is often noted for its potential to help power the AI boom. When I asked ChatGPT for a list of the best AI stocks to buy, it ranked Nvidia among its top picks, second only to actual trillion-dollar company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). This time around, it provided a detailed breakdown of why it sees Nvidia reaching the same level:
“Nvidia is a leading semiconductor and graphics processing unit (GPU) company that has been on a steady growth trajectory in recent years, with a current market capitalization of around $500 billion. There are several reasons why some analysts and investors believe that Nvidia has the potential to reach a $1 trillion valuation in the future.”
These reasons included “dominance in the AI and data center markets,” “diversification into new markets,” and high investor confidence as well as impressive financials. Nvidia’s market cap is actually $586 billion, a reminder that ChatGPT’s data is limited to 2021 and earlier. However, the rest of the reasoning holds up.
Illumina (ILMN)
This name isn’t as well-known as the other stocks that ChatGPT named as potential trillion-dollar winners. But that doesn’t mean investors should count Illumina (NASDAQ:ILMN) out. As InvestorPlace contributor Larry Ramer notes, the biotech company is a leader in the field of gene sequencing, which he describes as a “key to unlocking precision medicine.” ChatGPT has a similar take, citing multiple reasons to be bullish on ILMN. As it states:
“Illumina is a leading company in the genomics and genetic testing space, providing genetic sequencing and analysis solutions to researchers, clinicians, and biotech companies. There are several factors that could contribute to the company’s growth potential.”
The chatbot highlights the company’s history of innovation while also naming “increasing demand for genetic testing” and “expansion into new markets” as factors for why it sees so much potential, as well as its focus on partnerships and diversification of products.
Tesla (TSLA)
It’s no surprise that such a popular company would be on this list, especially after ChatGPT named electric and autonomous vehicles as a top opportunity. Tesla (NASDAQ:TSLA) is considered a leader in both fields.
While its autonomous driving technology has come under fire after multiple accidents, it remains firmly ahead of many competitors. Additionally, it still has its place at the front of the EV race, even as competitors close in. As InvestorPlace contributor Bret Kenwell reports, Tesla has already been in the trillion-dollar club and it could get there again. ChatGPT has a similar perspective. Per the bot:
“Tesla is currently the largest automaker by market capitalization, with a market cap [near] $600 billion. As the company continues to expand its electric vehicle production and autonomous driving capabilities, it could potentially reach a $1 trillion valuation.”
Block (SQ)
Constantly hailed as a winner in the fintech space, Block (NYSE:SQ) has emerged as a mobile payments leader. Led by former Twitter CEO Jack Dorsey, the company is recovering from a volatile year. But this isn’t the first time that ChatGPT has selected it as a stock with significant growth potential. InvestorPlace Assistant News Writer Shrey Dua recently asked the bot for a list of tech stocks with high five-year growth potential. It ranked Block just below Nvidia on a list that included Apple and Amazon. Here’s what it told me about SQ stock:
“[Block] has been on a steady growth trajectory since its founding in 2009 and has already reached a market capitalization of over $100 billion. With its focus on innovative financial solutions for small businesses, the company could potentially continue to grow and reach a $1 trillion valuation.”
As a result of its difficult 2022, Block no longer boasts such a high market cap. As of this writing, it sits at $43 billion. If markets turn around in 2023, though, SQ could easily make up the ground it has lost.
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.