Companies must operate in sectors with unprecedented growth to reach a $1 trillion market cap. Growth stocks can certainly help investors get there.
As businesses increasingly harness the power of artificial intelligence to enhance the decision-making processes, three stocks stand out as strong contenders to reach the $1 trillion club. These companies not only exemplify transformative impact, but show strategic competitive advantages in the marketplace.
Now, let’s discuss the 3 best growth stocks to reach the $1 trillion Status!
ASML Holding NV (ASML)
ASML Holding NV (NASDAQ:ASML) is a European-based semiconductor company headquartered in Veldhoven, Netherlands. Their advanced semiconductor chips are some of the most valuable and advanced technology in the world.
ASML’s proprietary lithography portfolio used in the manufacturing of semiconductors has been critical to the electronics industry for decades. EUV lithography machines help produce advanced microchips for smartphones, tablets, smart watches, and gaming consoles. According to Maximize Market Research, the EUV market will grow at a 28.18% CAGR by 2029.
This will be largely driven by the rapid adoption of artificial intelligence related software/hardware infrastructure and the continued momentum of the electronics market.
For FY23, analysts project EPS to be in the $20.69 – $21.17 range reflecting more than 30% YOY growth. This makes ASML a no-brainer growth stock to buy ahead of 2024.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) has been one of the best performing technology stocks for 2023. The stock is up more than 180% YTD, and 2024 might prove to be another strong year.
It wasn’t too long ago that Wall Street was bearish on large cap technology stocks. When the Fed pivoted in Q1 2022, the entire stock market fell into an abyss. Yet, looking back in hindsight, that was the best time to buy. However, if you’re late to the party, that doesn’t mean that there aren’t still opportunities that are present.
Meta has spearheaded its generative AI strategy in 2023, as well as implemented cost-cutting measures boosting profitability. In Q3 2023, net income skyrocketed 163% YOY to $11.53 billion.
EPS rose 168% YOY to $4.39 per share. As Meta’s cost-cutting and generative AI strategy goes into full effect, it remains one of the best growth stocks to buy for 2024.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) stock has been on a tear this year, despite slower growth and EV sales volume. Slower EV demand in China, higher interest rates and ongoing supply chain disruptions have been material in 2023. Yet, next year might be a surprise for Wall Street.
Tesla is at a critical point in its business and there is certainly a lot to look forward to. The company has massive expansion plans for their new gigafactory in Mexico and their booming energy storage business. During Q3 2023, Tesla’s energy storage revenue grew 40% YOY to $1.55 billion. They expect to ramp up to full capacity at their facility in Lathrop, CA to 40 GWh.
Additionally, Tesla continues to make strides with their FSD technology and the Cybertruck release has investors excited. Analyst’s project Tesla to grow top line revenue by 20% YOY for FY24. With interest rate cuts on the table for next year, Tesla could swell back to the $1 Trillion status.
On the date of publication, Terel Miles did not have (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.