Opinion: These Will Be the 3 Biggest Companies in 2029

A lot can happen in five years. For example, in 2019, most people had not heard of coronaviruses, mRNA vaccines, or social distancing.

Likewise, five years can change the stock market, too. As new technologies arrive, business conditions will change. Existing leaders can be stumbled, and rising stars can take their place.

So, what will be the top three companies in the market in 2029? This is my prediction.

Microsoft

In 2029, Microsoft (NASDAQ: MSFT) it will regain its status as the largest public company in the world.

There are many reasons why Microsoft jumped apple. However, I think the main reason is that software will be more important than hardware in the next five years, which will greatly benefit Microsoft and hurt Apple.

Of course, Microsoft is no longer just a software company. It makes gaming devices, laptops and tablets. However, those products make up a fraction of Microsoft’s sales. Most of the company’s revenue comes from cloud computing, application and operating system software, and, increasingly, artificial intelligence (AI).

Microsoft’s long-term partnership and investment in ChatGPT-maker OpenAI has already paid off, as the company has incorporated many features powered by ChatGPT into its software products. Additionally, as AI technology advances, investors should expect more integration and innovation that will keep Microsoft’s software on the cutting edge for years to come. to come.

Over time, that should help Microsoft outpace Apple, whose revenue growth has stalled as iPhone sales have stalled. It’s true that Apple has some interesting AI features that have boosted its stock price. However, over time, Apple must introduce new, innovative devices, or its products will fail to keep up with Microsoft.

Nvidia

It has been the hottest property on Wall Street for the past two years, and i it is currently the third largest company in the market. Must be Nvidia (NASDAQ: NVDA)and I think will be the second largest company by 2029.

Admittedly, I’ve recently been partial to Nvidia because of its high value. However, I still believe that the company can reach the No. 2 on this list within five years.

That’s why Nvidia’s graphics processing unit (GPU) technology is the industry standards. When companies want to develop the latest AI applications, they need Nvidia GPUs — — a lot of see. Companies love it Measure Planets and Tesla they bought hundreds of thousands of these chips to complete the metaverse or crack fully self-driving.

In turn, this led to a huge jump in Nvidia’s revenue. Annual sales nearly tripled, from $25 billion to $70 billion in less than two years.

The story continues

While I have concerns about whether Nvidia can continue to meet (and beat) sales estimates as a competitor from AMD and others are warming up, I still think the company’s stock can outperform Apple’s.

Amazon

Finally, there is Amazon (NASDAQ: AMZN). It is currently the fifth largest company in America, with a market cap of $1.9 trillion. But in 2029, I think it will jump the frog Alphabet and Apple up to No.3. Here is the reason.

Like Microsoft, Amazon relies on a variety of sources of income. It operates on the world’s largest cloud services platform, Amazon Web Services (AWS), the world’s largest e-commerce company. internet, and one of the top advertising networks. Importantly, it also has underappreciated properties in AI and robotics.

Consider Amazon’s massive warehouse network. The company has more than 750,000 robots working in these buildings, and plans to add many more in the coming years. In fact, the company has doubled its robot workforce in the past three years.

Not only does this use of robots make Amazon more efficient (which leads to more profits for shareholders), but it also puts Amazon in a better position to grow its robotics business — if it so choose. The company can use the lessons learned from its robotics operation to help other organizations, from restaurants to supermarkets, as robots in the workplace become the norm.

Finally, Amazon’s AI-powered smart speakers offer an opportunity for growth. More than 500 million attended sold, but they were never particularly profitable. However, the recent internal shake-up should give investors hope that Amazon can solve the problem of making home AI speakers more than just new ones. If the company pulls it off, it could be a new source of revenue for Amazon.

To sum up, Amazon is doing well with its existing business models. However, if the company can capitalize on its robotics and AI capabilities, I think Amazon could climb past Alphabet and Apple to take the No. 3 in 2029.

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Suzanne Frey, CEO of Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of CEO of Meta Platforms Mark Zuckerberg, is a member of the board of directors of The Motley Fool. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in Alphabet, Amazon, Nvidia, and Tesla. The Motley Fool has positions and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a publicity strategy.

Opinion: These Will Be the 3 Biggest Companies in 2029 was published by The Motley Fool.