Semiconductor giant Nvidia Corporation (NASDAQ: NVDA) recently joined the $1-trillion-market-capitalization club. While the move was short-lived, it could be an indication that the company will return to the club.
Benzinga recently polled its users to see which company could be the next to hit the impressive valuation milestone.
What Happened: Nvidia Corporation became the ninth company to ever reach a market capitalization of $1 trillion.
The move came as shares soared after the company reported first quarter financial results and provided guidance that came in significantly higher than what analysts had expected.
Nvidia saw shares fall towards the end of the week to a market capitalization of around $980 billion. With strong guidance and increased price targets from analysts, the company could see $1 trillion in valuation by the end of 2023 once again.
Without Nvidia, there are currently five members of the $1 trillion market capitalization club. The list includes:
- Apple Inc (NASDAQ: AAPL)
- Microsoft Corporation (NASDAQ: MSFT)
- Saudi Aramco
- Alphabet Inc (NASDAQ: GOOGL)
- Amazon.com Inc (NASDAQ: AMZN)
Apple, which was the first U.S. company to hit several market capitalization milestones, was the first to hit a $3 trillion value back in early 2022. The company is nearing the milestone once again with its market cap sitting at around $2.8 trillion.
Outside the $1 trillion club, there are four companies that have a market capitalization of $500 billion to $1 trillion. Two of those companies were previous members of the $1-trillion-market-capitalization club before seeing fall.
The Poll Results: Benzinga asked its social media followers which company could be next to join the $1-trillion-market-cap club, with two potential companies nearing a return to the club and two potential newcomers nearing the milestone for the first time.
The potential selections were:
Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B): $699.3 billion
Meta Platforms (NASDAQ: META): $679.2 billion (to re-join the club)
Tesla Inc (NASDAQ: TSLA): $630.4 billion (to re-join the club)
Taiwan Semiconductor (NYSE: TSM): $536.8 billion
- Berkshire Hathaway: 12.9%
- Meta Platforms: 15%
- Tesla: 53.8%
- Taiwan Semiconductor: 18.2%
The results overwhelmingly favor Tesla to be the next company to hit the $1 trillion milestone after Nvidia, despite ranking as the third-highest company by market capitalization outside Nvidia and the $1-trillion-market-cap companies. Tesla dominated the Twitter poll with over 50% of the vote.
Outside of Tesla, investors seem to be mixed on which company could be next to join the $1 trillion club.
Produced in association with Benzinga
Edited by Jessi Rexroad Shull and Sterling Creighton Beard