TSMC just hit a $1 trillion market cap. These 5 companies could be next
TSMC manufactures the most advanced computer chips in the world, which are essential for running the most complex AI tasks. The company makes chips for a variety of tech giants, including Nvidia and Apple.
As of the time of this writing, TSMC has a market capitalization of approximately $1.2 trillion. The chipmaking giant has achieved this 12-figure valuation on the strength of its chip business in recent months, which has seen a surge in demand thanks to the artificial intelligence boom sweeping the world.
But the question many people may be wondering now is who's next in line to join the $1 trillion club? Here's what the numbers say.
Who is currently in the $1 trillion club?
The list of companies valued at $1 trillion or more is pretty short. Currently, just 11 companies have a 12-figure valuation, according to data compiled by CompaniesMarketCap.com.
The companies with trillion-dollar market caps currently include:
Nvidia ($4.1 trillion)
Microsoft ($3.7 trillion)
Apple ($3.1 trillion)
Amazon ($2.4 trillion)
Alphabet/Google ($2.3 trillion)
Meta Platforms ($1.7 trillion)
Saudi Aramco ($1.6 trillion)
Broadcom ($1.3 trillion)
TSMC ($1.2 trillion)
Tesla ($1 trillion)
Berkshire Hathaway ($1 trillion)
While TSMC is the newest member of this esteemed list, the company that tops the chart, Nvidia, is the most notable. Not only is it the most valuable company in the world, but it is also the only company to have ever reached a $4 trillion market capitalization, which it achieved earlier this month.
What companies are closest to joining the trillion-dollar club?
As it's fairly hard to predict how the stock market—and individual stocks—will perform in the future, it's also nearly impossible to say with any certainty which company may be the next one to cross the trillion-dollar threshold.
The companies that are the closest now could have calamity strike next week, and see their stock prices plunge as a result, taking them further from the 12-figure mark.
Alternatively, a company that is worth only a few hundred billion now could strike metaphorical business gold next week, and see its share price surge, catapulting it to the trillion-dollar club out of nowhere.
But given that a company's market cap is defined by adding up the value of a company's total shares, it's easy to see which companies are currently next closest in line to becoming a trillion-dollar giant. The following five companies that are closest to the $1 trillion mark based on their current stock prices:
JPMorgan Chase (Market Cap $800 billion)
Walmart ($763 billion)
Visa ($685 billion)
Eli Lilly ($684 billion)
Oracle ($684 billion)
Banking giant JPMorgan Chase is the closest to a $1 trillion market cap. To reach it, it would only need to see its stock price rise by another 25% from current levels. Walmart would need to see its stock increase by about 31% from current levels. Visa, Eli Lilly, and Oracle would all need to see about a 46% jump in their stock prices to reach a $1 trillion market cap.
As for some of America's other tech giants, many would need to see their stock prices nearly double or triple from today's levels to reach a $1 trillion valuation. These companies include: Netflix (current valuation: $524 billion), SAP (current valuation: $358 billion), and Palantir (current valuation: $358 billion).
For now, it's unlikely that any of these companies will be hitting the $1 trillion threshold in the near future, which is precisely why TSMC joining the club is such a big deal. Even as the value of many of the world's largest companies continues to surge, crossing the 12-figure mark is still a relative rarity.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
A More Affordable EV Won't Save Tesla
Key Points Tesla fell 5% after hours on its second-quarter earnings report. Some investors saw production of a new, more affordable vehicle as a positive sign. The company launched its robotaxi network in June. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) issued another disappointing earnings report on Tuesday. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service The leading electric vehicle (EV) maker finished the after-hours session down 5%, but the sell-off could have been worse. The company reported a decline in both sales and profit. Revenue was down 12% to $22.5 billion, and adjusted net income was down 23% to $1.39 billion, or $0.40 per share. Those numbers actually topped a muted revenue estimate at $22.13 billion, while the bottom-line consensus matched the results at $0.40. Tesla's problems have been well-documented at this point. CEO Elon Musk's turn in the political spotlight seemed to backfire after his relationship with President Donald Trump went sour. Due in part to Musk's involvement with politics, the brand has become unappealing in the eyes of some potential buyers, leading to a 16% decline in automotive revenue. Sales have plunged in Europe, and the company is losing ground to more affordable Chinese EVs. One seemingly bright spot Musk has a long history of overcoming weak results by telling investors what they want to hear on the earnings call, including making big promises about its robotaxi network and other initiatives in autonomy like its Optimus robot. He seemed to do that again on the latest earnings call, with some comments about the more affordable model he has long promised, which some have dubbed the Tesla Model 2. Musk said that the company started production of the vehicle in June and is ramping up production now. He added: "The goal with those products was not to negatively impact revenue or gross margin, but just to make a car that everyone loves and wants at a more affordable price." Musk has long argued that price competition was one of the biggest headwinds facing the company, but the brand crisis seems to have overshadowed that. By introducing its own lower-priced model, Tesla may end up cannibalizing its more expensive vehicles. Customers may be choosing between a more expensive Tesla and that lower-priced model, rather than another brand. The new vehicle is just a cheaper Model Y, rather than a brand-new vehicle model. The robotaxi initiative The biggest reason Tesla has maintained its premium valuation even as sales and profits have tumbled is that investors believe that Tesla's robotaxi network could go mainstream, fulfilling Musk's long-term vision. However, the robotaxi has gotten off to only a modest start after launching in June, and it seemed to get less attention on Tuesday's earnings call, though Musk reminded the audience: "As you can tell, autonomy is the story." Management said that robotaxis in Austin, Texas have topped 7,000 miles with no significant safety interventions. The company is aiming to launch the robotaxi in the San Francisco Bay Area next. Tesla needs growth in its core business Investors have bid up Tesla stock on hopes for its initiatives in robotaxis and more affordable vehicles, but the company needs to return to growth in selling EVs for the stock to be successful over the long term. The decline in EV sales is a reflection of a backlash against Tesla's brand. The company is also expected to struggle over the next few quarters due to the elimination of the EV tax credit and a change in other federal policies that supported EV adoption. The company also faces a $300 million effect from tariffs. Tesla could get back on track, especially if the robotaxi network takes off. But the current valuation in the stock leaves little room for upside if it does, especially given the persistent challenges in EV sales. While a more affordable vehicle might be a step in the right direction, it seems more likely to undercut demand for Tesla's more expensive vehicles, rather than competing with alternatives. Should you buy stock in Tesla right now? The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. A More Affordable EV Won't Save Tesla was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
25 minutes ago
- Bloomberg
US, China Negotiators to Meet in Stockholm to Extend Trade Truce
US and Chinese officials are meeting Monday to extend their tariff detente beyond a mid-August deadline, and haggle over other ways to further defuse trade tensions. Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent will lead the delegations through Tuesday in Stockholm — their third meeting in less than three months. The agenda includes discussions about how long the current tariff truce can be extended, as well as US levies tied to fentanyl trafficking and Chinese purchases of sanctioned Russian and Iranian oil.
Yahoo
36 minutes ago
- Yahoo
The Straits Times Index Has Cracked the 4,200 Level: Is There Room for Further Gains?
The Straits Times Index (SGX: ^STI) posted a sterling performance year-to-date (YTD) as it broke multiple record highs. Earlier this month, the bellwether blue-chip index crossed the 4,000-mark for the first time as it recovered from April's tariff announcement. Just this week, the index has shot past the 4,200 level and shows no sign of stopping. Can this rally sustain, or should investors stay cautious for now? We unpack these developments to bring you some insights. A broad-based rally The surge in the STI is impressive, but investors may be surprised to note that the three local banks are not responsible for the bulk of this rise. DBS Group (SGX: D05), which occupies the largest weight within the STI at 25.1%, saw its share price increase by a little under 10% YTD. *Note: All weights are as of 31 March 2025. The next largest index component, OCBC Ltd (SGX: O39), takes up 16.3% of the index while Singapore's third largest bank, United Overseas Bank (SGX: U11) or UOB, had a weight of 12.4%. OCBC's share price increased just 3.4% YTD while UOB's shares inched up 1.9% YTD. Hence, it's clear that the banks have not contributed much to the index's stellar performance. So, the question is – which stocks did the heavy lifting this time? One example is Singapore Technologies Engineering (SGX: S63). The engineering firm's shares soared 77.9% YTD to hit S$8.27. Several other blue-chip stocks also posted strong share price gains. Property developers did well, with UOL Group (SGX: U14) surging 34.9% YTD and Hongkong Land (SGX: H78) soaring 42.9%. Sembcorp Industries (SGX: U96) leapt 41.8% YTD while Singapore Exchange (SGX: S68) saw its shares increase by 26.2% YTD. Local telco Singtel (SGX: Z74) also posted a strong performance with its share price jumping 33.7% YTD. Awaiting the banks' results These performances were achieved even when there were no major corporate announcements or earnings results. This suggests that the optimism could be related to the recent announcement of a large, S$1.1 billion capital injection by the Monetary Authority of Singapore to revitalise Singapore's stock market. There could be room for the rally to continue if the banks do report robust results. OCBC will report on 1 August while both DBS and UOB will announce their first half and second quarter earnings on 7 August. With interest rates set to hover 'higher for longer', the lenders could enjoy an unexpected tailwind if they can maintain their net interest margins. Fee income should also stay strong with wealth inflows into the region along with buoyant credit card spending. As for the rest of the STI's components, investors will also be keeping a close eye on their business updates and earnings announcements as the earnings season gets underway. Strategic reviews to unlock further value A catalyst that could take share prices higher is strategic reviews and long-term plans announced by several blue-chip players. Some companies also communicated their long-term objectives via Investor Day sessions that give investors a clearer idea of what to expect. For instance, ST Engineering released its Investor Day 2025 slides earlier this year and came up with another set of ambitious targets for 2029. The engineering giant also announced a progressive dividend policy that will add an incremental dividend based on one-third of the year-on-year increase in net profit from 2027 onwards. Hongkong Land also announced its strategic review late last year and has followed through with it by posting a higher year-on-year dividend for its 2024 results. Sembcorp Industries went a step further. The utility and urban development group not only announced its 2028 targets during its Investor Day 2023, but also announced a corporate reorganisation earlier this year. These developments injected a much-needed dose of optimism as investors witness clear progress towards attaining these goals. Singtel also reported a higher year-on-year dividend for fiscal 2025 and announced a S$2 billion share buyback programme to unlock more value for shareholders. Investors will be closely scrutinising the upcoming earnings season to determine if these companies can continue to report higher profits, free cash flow, and dividends. Get Smart: Monitor the business closely If you are afraid of a pullback in the STI, you are not alone. Some investors have expressed doubts about whether this surge is sustainable. One piece of good advice is to monitor the business behind the stock. If the business does well, the share price should naturally follow. Singapore's stock market is on a historic run, but can it last? We'll explore where interest rates are heading, whether blue-chip earnings can keep growing and more. Get the clarity you need — sign up now for our free webinar. When the market is unpredictable, where can you park your money with confidence? Our latest FREE report reveals 5 Singapore dividend-payers built to withstand global storms. Get it now and see what's still worth holding. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of DBS Group and Singapore Exchange. The post The Straits Times Index Has Cracked the 4,200 Level: Is There Room for Further Gains? appeared first on The Smart Investor. Sign in to access your portfolio
