Alphabet looks like the most likely company to follow Microsft into $3 trillion territory
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Today, Microsoft (NASDAQ:MSFT) reached an important milestone, surpassing a market capitalization of $3 trillion. After a year of solid and steady growth, it’s no surprise that the tech sector titan would reach such a lofty valuation, particularly with its high exposure to the booming artificial intelligence ( ) market. Having risen more than 65% over the past one year, MSFT stock has displayed a clear ability to grow and scale even at high levels.
This is an impressive feat, even for a leading tech company. But Microsoft touching the $3 trillion mark raises a follow-up question: Which of its competitors will be the next to join this elite group?
Following MSFT Stock: The Next $3 Trillion Winner
It stands to reason that the next $3 trillion stock would be a fellow member of the “Magnificent 7,” a group of industry-leading tech companies that includes Microsoft. As of this writing, Apple (NASDAQ:AAPL) currently holds the top spot in the group with a market cap of $3.01 trillion, still beating out Microsoft even after MSFT stock rose today (shares of MSFT have closed out the day with a $2.99 trillion market cap). However, Apple’s recent news regarding the scaling back of its plans for an autonomous vehicle may negatively impact share prices in the near future.
A few companies are working hard to catch up to Apple and Microsoft, though. For example, fellow tech giant Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is closing in with a market cap just under $2 trillion. Amazon (NASDAQ:AMZN) is currently valued at $1.62 trillion as well while AI chip leader Nvidia (NASDAQ:NVDA) — which joined the trillion dollar club last year — has a market cap of $1.52 trillion. Fellow Magnificent 7 stock Tesla (NASDAQ:TSLA), however, is lagging behind its peers. Tesla’s current market cap is just over $651 billion.
At this point, it seems as though Alphabet is the company most likely to catch up to Microsoft and see its market cap exceed $3 trillion. After all, the company boasts the same type of AI exposure that has helped MSFT stock reach this milestone. And as InvestorPlace’s Luke Lango notes, there may be another reason to bet on GOOG and GOOGL stock; Google is making progress in the fast-growing field of quantum computing. That could take it even higher in the coming months.
On the date of publication, Samuel O’Brient did not hold (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.