Future Tech Stocks: Potential Trillion-Dollar Companies and Millionaire-Making Technologies

Prediction: 2 Stocks That Will Be Worth More Than Apple 5 Years From Now | The Motley Fool

These companies are more established in AI and could overtake Apple before 2030. The stock market has fluctuated and reshuffled a lot since the start of last year. A surge in artificial intelligence (AI) has shed light on the vast potential of tech stocks, rallying investors and boosting the Nasdaq Composite by more than 60% since Jan. 1, 2023. Apple (AAPL 0.20%) secured its position as the world's most valuable company by market cap in 2011 and held that spot consistently until this year. The tech giant temporarily lost the top position between January and June of 2024 when Microsoft (MSFT 0.69%) surpassed Apple, and Nvidia (NVDA 1.67%) briefly achieved a market cap above $3 trillion. However, Apple's market cap of $3.3 trillion has seen it once again become the world's most valuable company. Yet, Microsoft and Nvidia continue to nip at its heels and could overtake the company for good in the coming years. Microsoft's diversified business model and increasingly established position in AI indicate it could have a more reliable position in tech. Meanwhile, Nvidia's nearly unrivaled dominance in the chip market appears to be the gift that keeps on giving as demand for graphics processing units (GPUs) continues to soar. So, here are two stocks that I predict will be worth more than Apple five years from now. Nvidia's market cap was $360 billion at the start of 2023 and is now $2.6 trillion, delivering an impressive growth spurt. The company has consistently outperformed Apple in stock growth over the last five years, with its share price up 2,600% compared to the iPhone maker's 330% rise. And that trend is unlikely to slow anytime soon. This chart shows the massive difference in financial growth Nvidia and Apple have experienced over just the last year. While these companies are both leaders in tech, their businesses differ significantly. Nvidia is profiting from soaring demand for chips, specifically its GPUs. These chips power many products, from cloud platforms to AI models, personal computers, game development engines, and more. Meanwhile, Nvidia has achieved an estimated 70% to 95% market share in GPUs. Technological advances are only likely to continue increasing the demand for powerful chips as companies work to improve their hardware and software offerings. Conversely, Apple has struggled to attract new customers to its products over the last year, with its iPhone and Mac revenue down 10% and 8%, respectively. Apple is working to expand in AI and will launch a major software update this fall called Apple Intelligence. The update will overhaul its operating systems, introducing various generative features. The company hopes Apple Intelligence will convince millions of consumers to upgrade their devices, as the features will only be accessible with newer products. While the software could boost earnings for the current fiscal year, how Apple will profit from AI over the long term remains to be seen. Meanwhile, Nvidia maintains a crucial role in the industry as a leading chipmaker, a position that will likely see it surpass Apple by market cap over the next five years. For years, Microsoft has played second fiddle to Apple on the list of most valuable companies. Apple has consistently outperformed the Windows company in stock growth, rising 330% since 2019 compared to Microsoft's 195%. However, that trend has shifted in 2024. Microsoft's share price is up 12% year to date, with Apple's up 8%. It's not a huge difference, but Microsoft's head start in AI and potent position in software will likely see it continue to outperform its rival. The AI market is projected to expand at a compound annual growth rate of 37% through 2030, which would see it hit nearly $2 trillion in spending. Meanwhile, Microsoft's diverse business model grants it multiple ways to monetize its AI products, thanks to homegrown brands like Windows, Office, Azure, Bing, Xbox, and LinkedIn. Since the start of 2023, the company has introduced generative features across its product lineup. This includes new productivity tools on Windows and its Office productivity suite, a revamp of Bing, and multiple AI solutions on its cloud platform Azure. Microsoft has also begun recouping some of its hefty investment in AI, attracting new members to Azure and Microsoft 365. Their respective segments have enjoyed year-over-year sales rises of 12% and 20% in 2024. Like Nvidia, Microsoft is outperforming Apple in earnings growth. Over the last three years, Microsoft's quarterly revenue and operating income have risen far higher than Apple's. Microsoft became a behemoth in tech thanks to its success in software. The emergence of AI has given it the opportunity for its unique skill set and product range to shine. The company arguably has more growth potential in AI, which could allow it to overtake Apple in market value before the end of the decade.

Prediction: These 4 Future Technologies Will Be Millionaire-Makers -- and Here Are the Top Stocks to Buy Now to Profit From Them | The Motley Fool

These technologies could be game-changers. And they could make forward-thinking investors a lot of money. If hockey great Wayne Gretzky received a quarter every time his most famous quote was cited, he'd probably have more money than he made during his sports career. That quote, of course, is: "I skate to where the puck is going, not where it has been." Although Gretzky's statement has become a cliché, it remains great advice for investors. Looking ahead is much preferable to looking to the past. It could be easier to "skate to where the puck is going" with investing than many might think. I predict that these four future technologies will be millionaire-makers -- and here are the top stocks to buy now to profit from them. Tremendous progress has been made in artificial intelligence (AI) in recent years. But what's potentially coming could make today's chatbots look primitive. Some experts predict artificial general intelligence (AGI) will be achieved before the end of this decade. Others think it will take several more decades. There are different definitions of AGI. However, most focus on AI that has human-level intelligence with the ability to learn on its own. AGI holds the potential to transform businesses in every sector and industry. Several technology giants are already racing to develop AGI. It's impossible to know which one will be the first to achieve success or which will be the biggest winner. However, I think one company will profit tremendously from AGI in nearly any scenario: Nvidia (NVDA 1.67%). Nvidia's graphics processing units (GPUs) are the gold standard for powering AI apps today. The company's heavy investments in research and development should keep it on top. AGI will likely require more powerful processing than current AI models. Nvidia's revenue and profits should skyrocket whenever the technology becomes available. Islet cell therapy involves transplanting islet cells from a pancreas into a patient's liver. These transplanted islet cells produce insulin, which regulates blood sugar levels. The therapy holds the potential to cure type 1 diabetes (T1D). Vertex Pharmaceuticals (VRTX 0.82%) is the leader in developing a cure for T1D using islet cell therapy: The big biopharmaceutical company's pipeline features two T1D programs in phase 1/2 clinical studies: VX-880 and VX-264. Vertex's early testing has already demonstrated tremendous potential for VX-880 in curing T1D. VX-264 is even more promising because it doesn't require the use of immunosuppressants as VX-880 does. Around 3.8 million patients in North America and Europe have T1D. A cure would almost certainly generate billions of dollars in sales. In the meantime, Vertex has huge growth opportunities with its cystic fibrosis franchise, gene-editing therapy Casgevy, and non-opioid pain drug suzetrigine, which could win U.S. approval by Jan. 30, 2025. Quantum mechanics can make your head spin. Tiny particles can exist in multiple states at the same time and be connected (or entangled) with other particles even if they're far apart. But it's also at the heart of quantum computing, a new type of computing that's significantly more powerful than current computers. Many companies are scrambling to develop quantum computers. Alphabet's (GOOG -2.35%) (GOOGL -2.31%) Google is arguably in the best position as of now. Google has set six key milestones in its quantum computing roadmap. It's already achieved two of them. Google believes it could develop a "useful, error-corrected quantum computer" by the end of this decade. The opportunities for quantum computing are enormous, including transforming drug development, designing new materials, modeling climate systems, and powering AI models. 5G wireless networks have increased bandwidth significantly compared to previous wireless technologies. However, the future will be focused on 6G. This next generation of wireless technology will support data exchanges of up to 1 terabit per second (100 times faster than 5G networks). 6G should open up multiple new opportunities. Holographic communications could be possible. Augmented reality and virtual reality could become more realistic. As you might expect, many companies should benefit from 6G. I think Apple (AAPL 0.20%) will be among the biggest winners. The introduction of 6G technology would almost certainly kick off a massive iPhone upgrade supercycle. This would further boost Apple's revenue and profits through increased adoption of the company's services. When will 6G be available? A broad commercial rollout is expected by 2030. While that's still several years away, Apple's launch of Apple Intelligence, which bundles new generative AI features, could fuel growth in the meantime.