Nvidia (NASDAQ:NVDA) finally did it.
It surpassed Apple (NASDAQ:AAPL) in market cap to become the world’s second-largest company. Indeed, few people would have thought the maker of popular GeForce gaming GPUs would have eclipsed the iPhone maker in value just three years ago. With three members in the $3 trillion market cap club, the race for the top spot is on. At this pace, I’d argue it’s just a matter of weeks before Nvidia becomes the largest company on Earth!
I don’t think Nvidia’s run is over quite yet. However, investors should warm up to the fast-rising companies that may be next in line to surpass Apple in market cap.
Undoubtedly, Apple still has a lot to prove on the artificial intelligence (AI) front. And, as other large-cap tech titans effectively monetize the technology, opportunities abound to join the $3 trillion club. They may even pass Apple in market cap.
Let’s explore three candidates that have a puncher’s chance to top Apple in the next 10 years.
Meta Platforms (META)
When it comes to companies that may one day surpass Apple in size, investors should think of fast-growing behemoths like Meta Platforms (NASDAQ:META). The social media juggernaut is continuing its evolution to become a metaverse play. To reach its final destination, which may still be a decade away, it’s going to need some serious AI chops (and chips) to convince the rest of us to invest in a Quest headset.
Whether the metaverse and its residents will be mostly AI-generated in the distant future remains a mystery. I think there’s a good chance AI will play a huge role in truly next-generation virtual worlds. And if that’s the case, Meta is right to be going “all in” on AI spending, with 2024 capex slated to be as high as $40 billion.
That’s quite the lofty bill, but one that may be necessary to build a platform that succeeds smartphones and PCs.
As Meta plays its role in advancing AI tech forward, I suspect the high double-digit growth will come naturally. With a $1.25 trillion market cap and healthy past-year momentum, META stock has a realistic shot of joining the $3 trillion club by 2034.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) had its shot at overtaking Apple when Elon Musk’s electric vehicle (EV) firm hit its peak valuation in late 2021. Since then, TSLA has shed more than half of its value. And the worst of the selling may not be over yet, as consumers pull the brakes on big-ticket expenditures.
Further, hybrid vehicles are getting better, smarter and more capable. So, too, are Tesla’s rivals that have been sprucing up their fully electric offerings. Though many may have written off TSLA stock today as “dead money,” I certainly wouldn’t remove it from my watchlist. It has one major wildcard that could help it climb right back to all-time highs: robotaxis.
If Musk can make next-generation robotaxis a reality within the next few years, I have no doubt Tesla could join the likes of Apple and Nvidia as the top three most valuable companies. Given the slipping fundamentals, though, you’ll need to have a lot of faith in Elon.
Taiwan Semiconductor (TSM)
Taiwan Semiconductor (NYSE:TSM) is the undisputed king of semiconductor foundries. As the AI chip boom continues, the $845 billion company may have more to climb. Though it’s quite a stretch to imagine TSM stock rising by enough that the firm becomes worth more than Apple, I would not dare bet against the company as it fulfills blistering demand for hardware made for the AI age.
As the company readies for 2nm and, eventually, 1.4nm chips while using AI itself, the recent breakout in the stock may only mark the beginning of an explosive move that brings it into a league with the largest heavyweights in the tech arena.
At writing, TSM stock still looks quite cheap at 31.5 times trailing price-to-earnings (P/E) relative to the opportunity that could be ahead.
On the date of publication, Joey Frenette held shares in Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.