The tech industry has long been a breeding ground for innovation, growth and unparalleled market performance. That has led to many leading technology giants achieving the once unimaginable feat of reaching a trillion-dollar market valuation.
It then begs the question, who will become the future trillion-dollar tech stocks to reach $10 trillion? As we stand on the brink of a new technological revolution, the race to become the next trillion-dollar titan intensifies. Artificial intelligence (AI), cloud computing and the Internet of Things (IoT) will all play a significant role in its future potential. The companies leading this charge will be the architects of our future.
Bear in mind that the journey to the $10 trillion-dollar valuation will be challenging, but for these select few, it’s a matter of when — not if.
Now, let’s discover the top three future trillion-dollar tech stocks to buy in 2024!
Apple (AAPL)
Apple (NASDAQ:AAPL), a pioneer in consumer electronics, has a history of revolutionizing technology with its innovative products and ecosystem. It is known for its iconic devices such as the iPhone, iPad and Mac. Additionally, Apple became the first company in the United States to surpass the $1 trillion dollar valuation back in August 2018.
Apple’s ability to seamlessly integrate hardware, software and services has created an extremely loyal customer base. Its services segment, which includes Apple Music, iCloud, Apple Pay and the App Store, has become a significant growth driver. However, what has gotten Wall Street excited is the company’s recent foray into AI. It is without question that the company is extremely behind in the AI race. But its recent announcement of Apple Intelligence at the Worldwide Development Conference is extremely exciting. It will leverage new generative AI features for iPhone, iPad and Mac. It will also integrate OpenAI’s ChatGPT through a distribution agreement. This focus on innovation, coupled with a robust hardware and software ecosystem, makes Apple one of the best future trillion-dollar tech stocks to buy in 2024.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) has successfully transformed itself from a software giant to a leader in cloud computing and AI. With its Azure cloud platform, Microsoft has become a formidable competitor to Amazon Web Services (AWS). Moreover, its investments in OpenAI and industry-leading copilot software are set to accelerate productivity for its large customer base.
Microsoft’s commitment to AI is evident in its development of advanced tools and frameworks, such as Azure AI, Copilot and its OpenAI partnership. These tools enable businesses to leverage AI, improve operations and drive innovation. Additionally, Microsoft’s AI initiatives extend to personal computing with advancements in Cortana and AI integrations across its entire Microsoft 365 suite. However, the true power of MSFT stock to inevitably become one of the next future trillion-dollar tech stocks is through its Azure cloud computing platform. With a large and growing network of data centers globally, it remains well-positioned to meet the growing demands of AI workloads. The company’s 23% cloud revenue growth in Q3 FY24 is just a small testament to its true potential over the long term.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has revolutionized the retail industry and established itself as a dominant player in e-commerce and cloud computing. It holds nearly one-third of the cloud infrastructure market, and its e-commerce business saw record shipments in the 2023 fiscal year.
On the surface, Amazon is generally more well-known for its incredible e-commerce business. However, its true long-term potential lies in its cloud computing platform, AWS and its long-term growth prospects in generative AI. AWS offers a comprehensive suite of cloud services, including computing power, storage and databases. Its cloud growth is accelerating, thanks to its ventures into AI. Moreover, its cost-cutting measures in the 2023 fiscal year led by CEO Andy Jassy was an incredible move. Earnings swung from negative to positive, with the company generating a record free cash flow of $36.8 billion. Its profitability also continues to advance, with operating income more than tripling to $15.3 billion in Q1 FY24. With its cloud business at a more than $100 billion annual run rate in 2024, AMZN stock is undoubtedly one of the next future trillion-dollar tech stocks.
On the date of publication, Terel Miles did not hold (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.