Tesla’s recent resurgence has propelled its market cap back above $1 trillion, but some analysts believe that three other stocks have the potential to surpass Tesla’s value in the next decade.
First on the list is Berkshire Hathaway, which already boasts a market cap of $1.01 trillion, putting it in close competition with Tesla. While Berkshire’s core businesses in insurance, energy, and railroads may not be as glamorous as Tesla’s electric vehicles, they offer stability and potential for growth. With Warren Buffett’s expertise and a substantial cash stockpile of $325 billion, Berkshire Hathaway is well-positioned to capitalize on future investment opportunities.
Next up is Broadcom, a semiconductor maker with a market cap of approximately $810 billion. The company’s focus on artificial intelligence (AI) and its ethernet networking equipment and custom AI accelerators could drive strong demand in the coming years. Broadcom’s recent acquisition of VMware is also expected to yield favorable results. If AI demand continues to rise, Broadcom has a chance to overtake Tesla.
Lastly, Eli Lilly, a pharmaceutical giant, may seem like a long shot to surpass Tesla’s market cap. However, with a market cap of around $760 billion, Eli Lilly has previously held a larger valuation than Tesla. The potential for positive developments, such as the success of its type 2 diabetes and obesity drugs, could significantly impact Lilly’s future growth. Analysts predict that sales of its drug Mounjaro could reach $34 billion by 2029, surpassing Lilly’s entire product lineup from the previous year.
While these predictions may seem ambitious, they are based on the potential for growth and market dynamics. It’s important to note that setbacks in Tesla’s robotaxi market or declining demand for its vehicles could impact its position. Similarly, setbacks in Lilly’s pipeline programs could hinder its growth prospects. However, analysts remain cautiously optimistic about the potential of these three stocks to outperform Tesla in the long run.