Jim Cramer has identified eight companies that could potentially reach a market cap of $1 trillion, joining tech giants Microsoft Corp. MSFT, Apple Inc. AAPL, and Nvidia Corp. NVDA, among others.
What Happened: Cramer, on his show “Mad Money” on Wednesday, named Eli Lilly and Co. LLY and Tesla Inc. TSLA as the top contenders to join the elite group, reported CNBC.
As of now, only tech giants Microsoft, Apple, Nvidia, Alphabet Inc. GOOG GOOGL, Amazon.com Inc. AMZN, and Meta Platforms Inc. META have surpassed the $1 trillion market cap.
“To me, it’s going to be Lilly up next,” Cramer said. “But the sheer popularity of Tesla might allow Musk to sneak back into the top rung, turning the Super Six back once again into the Magnificent Seven.”
For context, Elon Musk-led Tesla had crossed the trillion-dollar market capitalization mark back in 2021, becoming only the sixth U.S. company to reach the milestone.
Cramer also identified Warren Buffett's Berkshire Hathaway Inc. BRK, BRK, Broadcom Inc. AVGO, JPMorgan Chase & Co. JPM, Walmart Inc. WMT, Visa Inc. V, and Exxon Mobil Corp. XOM as other contenders for the trillion-dollar club.
Cramer highlighted the diverse nature and extensive reach of Berkshire Hathaway’s portfolio. However, he noted that lower interest rates might be necessary for Berkshire Hathaway to achieve significant growth.
| Company | Market capitalization | Stock Price |
| Berkshire Hathaway | $892.82 Billion | $413.79 |
| Eli Lilly | $846.18 Billion | $939.78 |
| Tesla | $839.58 Billion | $263.26 |
| Broadcom | $812.13 Billion | $1,745 |
| JPMorgan Chase | $596.73 Billion | $207.80 |
| Walmart | $566.34 Billion | $70.41 |
| Visa | $538.12 Billion | $263.00 |
| Exxon Mobil | $502.06 Billion | $111.92 |
Eli Lilly’s rival Novo Nordisk NVO currently has a market capitalization of $635.67 billion.
Why It Matters: Cramer’s prediction comes in the wake of the remarkable performance of Tesla’s stock, which surged after Cramer expressed his preference for General Motors over Tesla in late June. The stock rally was attributed to Tesla’s second-quarter delivery numbers, which exceeded estimates.
Earlier in July, Maurits Pot, the CEO of Tema ETFs, predicted that the GLP-1 drug market for obesity treatment could reach $1 trillion or more, challenging the prevailing notion of a duopoly of Eli Lilly and Novo Nordisk in the weight-loss market.
Meanwhile, Cramer advised investors to consider buying the ‘Mag 7’ stocks when interest rates rise and to buy everything when rates fall, indicating a potential market strategy shift.
On a separate note, Taiwan Semiconductor Manufacturing Company Ltd. TSM recently saw its market capitalization reach the $1 trillion mark, with shares trading significantly higher.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
