Several big market capitalization milestones have happened in 2021 withFacebook IncFBjoiningthe $1 trillion club andMicrosoft CorporationMSFTmarking a $2 trillion milestone.
There are currently five companies trading with market caps of more than $1 trillion with former member Facebook now falling just shy at $965 billion, according toAssetdash.com.
Apple IncAAPLleads the way with a market cap of $2.38 trillion, followed by Microsoft at $2.09 trillion,Saudi Aramcoat $1.86 trillion,Amazon.com IncAMZNat $1.79 trillion andAlphabet IncGOOGGOOGLat $1.75 trillion.
There is a large gap from Facebook to the next company closest to $1 trillion, which leads to the question of what could be the next company to hit a market cap of $1 trillion.
Here are some potential companies that could close in on the milestone in the near term or long term.
Tencent Holdings
The next closest company to the $1 trillion milestone isTencent Holdings ADRTCEHY. The company is the largest gaming company in the world withownershipof several gaming subsidiaries and also minority investments in others.
Tencent ownsRiot Games, which is the owner of “League of Legends,”one of the most popular games in the world. Tencent’sTiMi Studiosowns“Honor of Kings,”one of the largest mobile gaming companies.
Tencent is also the 40% owner ofEpic Games,the company behind“Fortnite.”Tencent also owns stakes inBluehole, Ubisoft, Activision Blizzard, Inc.ATVIandSea Ltd SE, giving it exposure to many leading gaming companies and top games.
Video games made up 32% of the company’sfirst-quarterrevenue. The company also gets large portions of revenue from social networks (22%), online advertising (16%) and fintech (29%). The company’sWeixinandWechatsocial media platforms had 1.24 billion monthly active users in the first quarter.
First-quarter revenue for Tencent was $20.9 billion. The company could continue to benefit from its growth of video games, social networks and fintech. Tencent could also see market cap rise if it spins off or sells its stakes in several companies that could benefit higher on their own.
Leading electric vehicle companyTesla IncTSLAhas a market cap of $623 billion, placing it among the top five companies trading closest to the $1 trillion mark.
Tesla has seen a massive growth of its electric vehicle segment and could see a rise in revenue growth and market cap valuation thanks to its solar power and energy storage segment.
Tesla reportedfirst-quarterrevenue of $10.4 billion, up 74% year-over-year. The company’s solar business saw the amount of solar deployed in the first quarter up 163% year-over-year and strong growth of the energy storage business.
Upcoming releases of theTesla CybertruckandTesla Semicould be major catalysts to help power additional growth in electric vehicles and lead to analyst upgrades and higher price targets for Tesla shares.
With competition coming in the electric vehicle space, Tesla could need strong growth from its other segments to take it to the $1 trillion level.
Given Tesla’s history of valuation rising and hitting company milestones, the company could be one of the best bets to hit the $1 trillion level in the future.
Over the last five years, shares of $NVIDIA Corp(NVDA)$ have gone up 1,300%. The company has a market cap of $115 billion, placing it a long way from the $1 trillion mark.
The company is seeing massive growth across several sectors, which could make it a fast-growth company moving closer to $1 trillion in the future.
First-quarter revenuehita record $5.66 billion for NVIDIA, up 84% year-over-year. The company’s gaming revenue hit a record $2.76 billion, up 109% year-over-year.
Nvidia also saw record data center revenue of $2.05 billion, up 79% year-over-year.
Nvidia reported strong demand for multiple business segments, which could lead to future growth.
Nvidia is seeing demand in many of the hottest growth sectors for semiconductors including games, data centers and even Bitcoin mining.
Others: Some of the largest market cap companies that are closest to $1 trillion outside this list areBerkshire Hathaway Inc.NYSEBRKANYSEBRKBat $624 billion,Taiwan Semiconductor Mfg. Co. Ltd. TSM 0.02%at $598 billion,Alibaba GroupHolding Ltd - ADR BABA 0.1%at $565 billion andVisa IncV 0.02%at $525 billion.
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