2 stocks that could reach trillions of dollars by 2030

Achieving a market capitalisation of one trillion dollars is an incredibly challenging milestone that has so far been achieved by only a few global giants, especially in the technology sector, such as Apple, Amazon, Microsoft and Nvidia. But this exclusive group doesn't have to stay closed forever. Some companies have the potential to join it if they continue their growth.

In this article, we look at two companies that could reach trillions of dollars by 2030. Which companies are they?

Visa $V: The royal road to global growth

Visa, which operates one of the largest payment networks in the world, plays a key role in everyday transactions around the world. The company has benefited from a long-term trend away from cash and toward cashless payments, which has given it great results over the past decade. Currently, Visa is just under the $550 billion market capitalization mark, which means it would need to achieve a compound annual growth rate (CAGR) of around 10.5% to reach $1 trillion by 2030. Given Visa's growth history and its strong market position, this goal is achievable.

A key reason for Visa's success is network effects, which ensure that the more people use Visa cards, the more attractive its network is to merchants. This reciprocal relationship between users and merchants strengthens its dominant market position. Although credit cards are already widespread in many developed countries, Visa still sees huge growth potential in developing countries where the prevalence of these products is lower. The company estimates that it has the opportunity to capture up to $20 trillion worth of transactions.

With its strong market position and innovative approach, Visa has all the ingredients to sustain growth in excess of 10% per annum in the coming years, which could help it reach a trillion-dollar market capitalisation by the end of the decade.

Novo Nordisk $NVO: Healthcare pioneer and future giant

Novo Nordisk, a Danish pharmaceutical company specializing in diabetes and obesity treatments, is another company that may become a member of the "trillion dollar club." It currently has a market capitalization of around $400 billion, which means it would need to achieve a compound annual growth rate of around 16.5% to reach a trillion by 2030. While that may sound like a big challenge, Novo Nordisk has had impressive growth in recent years, particularly with its drugs Wegova and Ozempic, which have become global phenomena in the treatment of obesity and diabetes.

The market for weight loss drugs is growing rapidly and is estimated to be worth up to $150 billion by the early 2030s, a substantial increase from $24 billion in 2022. Although many other pharmaceutical companies are trying to tap into this lucrative market, Novo Nordisk still maintains a strong position with its extensive portfolio. Among its most promising innovations are the oral drug amycretin and the injectable CagriSema, which could generate annual revenues in excess of $20 billion by 2030.

In addition, Novo Nordisk is targeting other areas of high unmet need, including treatments for Alzheimer's disease and non-alcoholic steatohepatitis. With the development of new drugs for rare diseases and further innovations in diabetes and obesity, the company has a wide scope for growth. If it continues to win key approvals for its products, its sales and stock value should continue to rise, making it one of the leading candidates to reach the trillion-dollar mark by the end of this decade.

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