Tesla (NASDAQ: TSLA) is truly a Rorschach test for stocks. Opinions on the electric vehicle (EV) manufacturer reveal a lot about investors. Some view Tesla as an unstoppable force, while others believe it is overvalued.
Whatever your take on it, one thing is certain: the market capitalization is much lower than it was a year ago. I expect the stock to rise further, but I believe other stocks may generate greater returns. Here are three stocks that could be more valuable than Tesla by 2030.
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NVIDIA
NVIDIA (NASDAQ: NVDA) is not far behind Tesla in terms of market capitalization. My prediction is that it is the most likely stock to surpass the EV maker within the next 7 years.
NVIDIA’s stock price is significantly lower than its 52-week high due to a recent massive surge. The main reason for the drop is underwhelming earnings, but this is only a temporary setback. Look for NVIDIA’s gaming business to return to growth this year.
More importantly, the company’s chips for data centers are now its biggest revenue driver. As the adoption of artificial intelligence (AI) grows, this sector is poised for substantial growth.
Jensen Huang, the CEO, expressed a similar view during the company’s latest quarterly conference call, saying, “AI adoption is at an inflection point,” similar to the personal computer, internet, and smartphone revolutions. I believe he is right. I also think NVIDIA will be one of the biggest winners of the AI boom.
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Meta Platforms
Over the past decade, Meta Platforms (NASDAQ: META) has outpaced Tesla in market capitalization. However, this role shifted in late 2021. Still, don’t count Meta out of the comeback race.
Some investors believe Meta’s best days are behind it. The company’s core social media platforms are no longer growing as they once did. Meta has heavily invested in virtual reality and the metaverse, but that large bet has not paid off so far. Instead, it has financially weighed down the company.
However, nearly 3 billion people globally actively use Meta’s social media apps (Facebook, Instagram, Messenger, and WhatsApp) every day, with over 3.7 billion individuals using at least one app per month. When the advertising market bounces back (and it will), Meta will see its revenue soar.
Meta is also a major player in AI. The company has huge growth potential by further integrating AI into its apps. Additionally, Meta’s bet on the metaverse could pay off handsomely if Mark Zuckerberg’s vision comes to fruition. The company may need to take a lucky break to eclipse Tesla, but it has a good chance.
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Visa
Visa (NYSE: V) operates neck-and-neck with Meta in terms of market capitalization. However, I predict that the payments giant could be one of the few companies worth over $1 trillion by 2030.
Visa has a lot to say when it comes to its strong moat. The company, along with its top competitor Mastercard, enjoys a highly profitable duopoly in credit card payments.
Can cryptocurrencies disrupt this duopoly? The chances don’t seem too high. Visa has fully embraced blockchain technology to make payment processing more secure, adopting blockchain as a core part of its B2B Connect cross-border payment service.
I believe Tesla will grow faster and maintain its lead over Visa for the next 10 years. However, don’t be surprised if Visa catches up steadily in the years ahead and ultimately surpasses the EV maker.
Three Stocks That Could Be More Valuable Than Tesla by 2030
