Stocks to buy

Hitting a $1 trillion valuation is a real milestone for a publicly traded company. Very few companies have achieved such a high market capitalization; nearly all are large, widely held technology securities. These tech titans have ascended to new heights as their shareholder base has widened and their share price has grown exponentially. With markets recovering from the downturn experienced throughout most of 2022, tech stocks are again ascending to new heights, raising the question of when we can expect to see a stock reach a $10 trillion valuation. While that lofty goal might seem implausible today, remember that a $1 trillion valuation seemed hard to imagine just a few years ago. The first $1 trillion valuation was only achieved in 2018. Here is a list of three tech titans leading the charge toward a $10 trillion valuation.

Apple (AAPL)

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Shares of Apple (NASDAQ:AAPL) are again trading at an all-time high, and the company’s stock is back near a $3 trillion market capitalization. Apple has the biggest market cap among tech titans and will likely reach a $10 trillion valuation first. Currently, Apple has the highest valuation of any stock in the world. Apple’s stock has been propelled nearly 50% higher this year on improving sentiment towards tech stocks and as the company continues to expand and improve its products.

Most recently, Apple introduced a new augmented reality headset that consumers can use to watch movies and surf the internet. That will retail for $3,500 when it is available in early 2024. The company also constantly updates and improves its popular iPhone, Macbook, and Apple Watch consumer products. And it’s pushing into new areas ranging from streaming to buy now, pay later. AAPL stock remains one of the best tech stocks investors can own, having risen 1,100% over the last decade.

Nvidia (NVDA)

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Microchip and semiconductor company Nvidia (NASDAQ:NVDA) has just joined the $1 trillion valuation club. NVDA stock has a market capitalization of $1.07 trillion, reaching the milestone on June 13 of this year. Nvidia is the seventh U.S. company to achieve a $1 trillion valuation. And the momentum behind Nvidia’s stock shows no signs of slowing down. Fueled by the hype surrounding using its chips in artificial intelligence (AI), Nvidia’s share price has gained 201% year to date.

The major catalyst for Nvidia’s stock occurred when it announced its earnings on May 24. The chipmaker provided forward guidance 50% higher than analysts’ consensus forecasts, driven by demand for its chips among AI companies. The company’s earnings and revenue for this year’s first quarter also trounced Wall Street expectations. NVDA stock jumped more than 25% higher immediately after the earnings print and continues to run hot. And AI demand is still in its infancy, say many analysts.

Alphabet (GOOG, GOOGL)

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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is another tech titan that is a member of the exclusive $1 trillion valuation club. The parent company of the Google search engine currently has a market capitalization of $1.59 trillion. As with AAPL and NVDA stocks, shares of GOOGL have the wind in their sails right now as markets recover from last year’s tech wreck and as excitement around AI grows stronger. Alphabet is, of course, a world leader in AI through its Google Brain and DeepMind research units, which it recently merged.

Alphabet has been busy announcing and rolling out several new AI products this year. The biggest announcement concerns the company’s Bard generative AI chatbot, a competitor to the wildly popular ChatGPT platform. Going forward, Alphabet plans to use AI to enhance most of its consumer products, including its suite of digital products — from Gmail to Google Maps. Following some initial missteps, Alphabet seems to have won over analysts and investors with its plans, sending GOOGL stock up 40% this year.

On the date of publication, Joel Baglole held long positions in AAPL, NVDA and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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