3 High-Growth Stocks That Could Be Worth $1 Trillion in 10 Years — or Sooner

High-growth mega-cap stocks such as Eli Lilly and Visa may be next in line to be valued at $1 trillion by market cap.

| More on:
A stock price graph showing growth over time

Image source: Getty Images.

Today, just seven publicly listed companies are valued at a market cap of more than US$1 trillion. However, the widening GDP (gross domestic product) rates globally and expanding earnings base for corporates should drive valuations in the upcoming decade.

Here are three high-growth stocks that could be worth US$1 trillion within the next 10 years.

Visa stock

Valued at US$565 billion by market cap, Visa (NYSE:V) is a tech platform that connects merchants, customers, and financial institutions to expedite financial transactions and payments. It earns a fee to process these transactions and has gained massive traction in the last two decades due to the worldwide shift towards digital payments.

Moreover, Visa isn’t a lender and is immune to credit risk, making it among the best tech stocks to own in the fintech space.

Visa stock went public in 2008 and has since returned a whopping 2,100% to shareholders in dividend-adjusted gains. It pays shareholders an annual dividend of US$2.08 per share, indicating a yield of just 0.76%. However, these payouts have risen by 13.5% annually in the last 13 years.

Visa is the undisputed market leader in this vertical, processing US$15 trillion worth of transactions annually. Priced at 28 times forward earnings, Visa stock trades at a reasonable valuation, given its earnings are forecast to rise by 13.3% annually in the next five years.

Its current market cap suggests Visa needs to gain 45% to surpass a trillion-dollar valuation. In fact, Visa might be valued at US$1 trillion by the end of 2027 due to its solid earnings growth.

Eli Lilly stock

Valued at US$700 billion by market cap, Eli Lilly (NYSE:LLY) is also close to a trillion-dollar valuation. One of the largest healthcare companies in the world, Eli Lilly stock has returned 1,750% to shareholders in the last 20 years. Despite its massive size, Eli Lilly has increased sales from US$24.5 billion in 2020 to US$28.5 billion in 2022. Analysts now expect the company to increase revenue to US$51 billion in 2024.

A key driver for Eli Lilly’s sales is Mounjaro, a diabetes drug that raked in US$5.2 billion in sales in 2023. In the fourth quarter (Q4) of 2023, Mounjaro sales stood at US$2.21 billion, up from just US$279 million in the year-ago quarter. The drug’s sales in the U.S. totalled US$2.11 billion, up from US$257 million due to higher realized prices and robust demand.

Priced at 40.7 times forward earnings, LLY stock might seem expensive. But analysts forecast earnings to grow by over 40% in the next four years.

Advanced Micro Devices stock

While Eli Lilly and Visa are expected to surpass US$1 trillion in market cap in the medium term, Advanced Micro Devices (NASDAQ:AMD) might take a bit longer to reach the milestone, given its current valuation of US$278 billion.

AMD is a semiconductor giant that should benefit from the artificial intelligence megatrend. It is forecasted to increase sales from US$22.7 billion in 2023 to US$32.4 billion in 2024. Comparatively, earnings are estimated to more than double from US$2.65 per share to US$5.45 per share in this period.

So, AMD stock is priced at 32 times forward earnings, which is reasonable. If it maintains this valuation, AMD stock should surge over 120% in the next five years.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Advanced Micro Devices and Visa. The Motley Fool has a disclosure policy.

More on Tech Stocks

Tech Stocks

3 Magnificent Stocks That Have Created Many Millionaires, and Will Continue to Make More

Shopify stock is an example of a millionaire-maker stock that is likely to continue to thrive in the long run.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

Why Hut 8 Stock is Up 44% in the Last Week

Hut 8 stock (TSX:HUT) has surged in the last week, and even more year to date. But if you think…

Read more »

Coworkers standing near a wall
Tech Stocks

Why Nvidia Stock Fell 10% Last Week

Nvidia stock (NASDAQ:NVDA) fell by 10% last week after its competitor announced an earnings date, but without preliminary results.

Read more »

Businessman holding AI cloud
Tech Stocks

3 Artificial Intelligence (AI) Stocks to Buy With $500 and Hold Forever

Canadian AI stocks like Open Text Corp (TSX:OTEX) are changing the game.

Read more »

Online shopping
Tech Stocks

Should You Buy Shopify While it’s Below $100?

Here's why Shopify (TSX:SHOP) remains a top long-term growth stock investors should consider buying below the key $100 level.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Should Investors Buy Lightspeed Stock Ahead of Earnings?

Lightspeed (TSX:LSPD) stock has served a period of drama for investors in the last few months, so what can investors…

Read more »

Tech Stocks

TFSA Investors: 1 Top Tech Stock to Buy With $500

TFSA investors can consider owning quality tech stocks such as Datadog to benefit from outsized gains in 2024 and beyond.

Read more »

Dots over the earth connecting the world
Tech Stocks

Hot Takeaway: Concentration in 1 Stock Can Be Just Fine

Concentration in one stock can be alright under the right circumstances, and far better than buying a bunch of poor-performing…

Read more »