Prediction: These two stocks will join Nvidia, Meta, Apple, Amazon and Microsoft in the trillion dollar club by 2030

Reaching a $1 trillion market cap is such a challenging milestone that only a handful of companies have achieved it. The list includes several tech giants such as Nvidia (NASDAQ:NVDA), Metaplatforms (NASDAQ:META), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN)And Microsoft (NASDAQ:MSFT). Although this elite club is very exclusive, more companies will eventually join it. Stocks trending in this direction could be worth serious consideration. Let’s look at two: visa (v 0.39%) And Novo Nordisk (NVO 0.04%). These companies could be trillion-dollar stocks by 2030.

1. Visa

Visa operates one of the largest payment networks in the world and helps power millions of credit card transactions every day. The company has delivered excellent returns over the past decade as cash transactions continue to be replaced by other forms of payments. Visa’s market capitalization as of this writing is just under $550 billion – meaning the company needs a compound annual growth rate (CAGR) of about 10.5% to become a trillion-dollar company by the end of 2030. This is definitely within the company’s power. For one thing, Visa has done much better over the last decade.

V Total Return Level data from YCharts.

Of course, this is no guarantee that the company will continue to deliver the same returns in the future, but some of the underlying factors that have led to such solid performances from the company in the past are still present. Visa remains a leader in its industry, its only real significant competitor being MasterCard (NYSE: MA). Visa continues to benefit from network effects: the more people have credit cards with its logo, the more attractive its ecosystem becomes to merchants, and vice versa. This helps ensure that the company remains a major player in this industry for a while.

There is also still a lot of room for growth at Visa. Credit card penetration is relatively high in many developed countries, but not in others. There is even more potential in developing countries. Visa sees a $20 trillion opportunity in the range of payments it can process. The company’s roughly $35 billion in revenue over the last 12 months is just a tiny percentage of that total. If Visa can advance in its addressable market, the company’s revenue, earnings, and stock price should trend in the same direction as it has over the past decade.

The company is well positioned to achieve an annual growth rate of more than 10.5% by 2030.

2. Novo Nordisk

As of this writing, Novo Nordisk’s market cap is approximately $400 billion. To reach $1 trillion would require an annual growth rate of about 16.5%. That would be an impressive average that could be sustained for six years, but Novo Nordisk has been more than impressive lately. Brand names like Wegovy and Ozempic have become famous. Both are GLP-1 drugs used to treat obesity and diabetes, respectively. Novo Nordisk was one of the pioneers in the GLP-1 weight loss market, which now attracts pharmaceutical companies from all over the world.

Some analysts estimate the market for weight loss drugs will reach $150 billion by the early 2030s, up from $24 billion last year. And while there will be many challengers, Novo Nordisk’s pipeline is unmatched in this space. The company’s most promising programs include an oral drug called Amycretin and CagriSema, which some estimate could generate up to $20.2 billion in sales by 2030.

But that barely scratches the surface of Novo Nordisk’s pipeline. Semaglutide (the active ingredient in Wegovy and Ozempic) is being tested for the treatment of Alzheimer’s disease and non-alcoholic steatohepatitis, two areas of high unmet need. The company is developing several other drugs for diabetes and obesity, as well as a range of treatments for various rare diseases. Novo Nordisk’s revenue has grown rapidly over the past five years, as has its share price and market capitalization.

NVO sales data (annual) from YCharts.

The drugmaker should receive key approvals in the next few years that will help it continue to deliver excellent financial results through the end of the decade. Becoming a trillion-dollar stock by 2030 is well within Novo Nordisk’s reach and should continue to beat the market beyond that.