Here are the 3 biggest companies in 2029

A lot can happen in five years. For example, in 2019, most people had never heard of coronaviruses, mRNA vaccines, or social distancing.

Similarly, five years can change the stock market. As new technologies emerge, corporate hierarchies will evolve. Current leaders may stumble, and rising stars may take their place.

So, which three companies will be the largest by market capitalization in 2029? Here’s my prediction.

Microsoft

Until 2029 Microsoft (NASDAQ:MSFT) will regain its position as the largest publicly traded company in the world.

There are many reasons why Microsoft will be ahead of the competition Apple. Still, I think the main reason is that in the next five years software will become more important than hardware, which will greatly benefit Microsoft and hurt Apple.

Of course, Microsoft is no longer just a software company. It makes gaming devices, laptops, and tablets. But those products make up a fraction of Microsoft’s sales. The bulk of its revenue comes from cloud computing, application software, and operating systems, and increasingly, artificial intelligence (AI).

Microsoft’s long-standing partnership and investment in ChatGPT maker OpenAI has already paid off, as the company has integrated many of the features powered by ChatGPT into its software products. Furthermore, as AI technology continues to evolve, investors should expect further integration and innovation that will keep Microsoft’s iconic software suite at the top for years to come. come.

In time, this should help Microsoft overtake Apple, whose revenue growth has stalled as iPhone sales have plateaued. Sure, Apple has some exciting AI-based features that have boosted its stock price. But in the long run, Apple needs to come up with innovative new hardware or its stock will not keep up with Microsoft’s.

Nvidia

It’s been the hottest stock on Wall Street for the past two years, and his currently the third largest company by market capitalization. His Nvidia (NASDAQ: NVDA)AND I think by 2029 it will be the second largest company.

I admit that I have recently changed my mind about Nvidia due to its high valuation. However, I Still We believe the company can reach No. 2 on this list within five years.

This is because Nvidia’s graphics processing unit (GPU) technology is this Industry standard. When companies want to develop cutting-edge AI systems, they need Nvidia Graphics Processors — A lot With theirCompanies like Finish Platforms AND Tesla we bought hundreds of thousands of these chips to improve the metaverse or crack fully autonomous.

This, in turn, led to a huge increase in Nvidia’s revenue. Annual sales nearly tripled, from $25 billion to $70 billion in less than two years.

The story continues

Although I have concerns about whether Nvidia will be able to meet (and beat) sales estimates, as the competition AMD and others will get going, I still think the company’s shares can outperform Apple’s shares.

Amazon

At the end there is Amazon (NASDAQ: AMZN)It is currently the fifth-largest American company, with a market capitalization of $1.9 trillion. But until 2029 I think it will jump over Alphabet and Apple came in 3rd place. This is why.

Like Microsoft, Amazon relies on a diverse set of revenue streams. It operates the world’s largest cloud services platform, Amazon Web Services (AWS), the world’s largest e-commerce platform network, and one of the best ad networks. Crucially, it also has undervalued assets in AI and robotics.

Consider Amazon’s vast network of warehouses. The company has more than 750,000 robots working in those facilities, and plans to add many more in the coming years. In fact, the company has already doubled its robotic workforce in the past three years.

The use of robots not only increases Amazon’s operational efficiency (which translates into higher shareholder returns), but also puts Amazon in a prime position to grow its robotics business – if This so chooses. The company could use lessons learned from its robotics operations to help other organizations, from restaurants to retail, as robots in the workplace become the norm.

Finally, Amazon’s AI-powered smart speakers represent a growth opportunity. Over 500 million was soldbut they’ve never been particularly profitable. But recent internal shakeups should give investors hope that Amazon can solve the puzzle of how to make AI home speakers more than just novelties. If the company can do that, it could be a huge new revenue stream for Amazon.

To sum upAmazon only does well with existing business streams. However, if the company can leverage its robotics and AI capabilities, I think Amazon could overtake Alphabet and Apple and take 3rd place by 2029.

Is it worth investing $1000 in Nvidia now?

Before you buy Nvidia stock, consider the following:

This Motley Fool Stock Advisor a team of analysts have just identified what they believe is Top 10 Stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could deliver huge gains in the years to come.

Consider when Nvidia We created this list on April 15, 2005. If you invested $1,000 at the time of our recommendation, you would have $692,784!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio-building tips, regular analyst updates, and two new stock picks each month. Stock Advisor the service has more than four times S&P 500 return since 2002*.

See 10 actions »

*Stock Advisor Returns as of July 22, 2024

Suzanne Frey, an Alphabet executive, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former Facebook chief market development officer and spokeswoman and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jake Lerch holds positions in Alphabet, Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 call options on Microsoft and short January 2026 $405 call options on Microsoft. The Motley Fool has a disclosure policy.

Opinion: These Are the 3 Biggest Companies to Invest in 2029 was originally published by The Motley Fool