Prediction: 3 Stocks That'll Be Worth More Than Tesla 10 Years From Now
Tesla (NASDAQ: TSLA) is back. Shares of the electric vehicle (EV) maker plunged as much as 43% earlier this year. The stock has been on a roll since late April, though, soaring more than 130%.
Thanks to the strong rebound, Tesla once again boasts a market cap of over $1 trillion. I’m unsure how the stock will perform going forward. However, I predict that 10 years from now, the following three stocks will be worth more than Tesla.
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is arguably the easiest pick in my prediction. The conglomerate’s market cap of $1.01 trillion is already neck and neck with Tesla’s.
How could Berkshire vault past Tesla? Its core businesses — insurance, energy, and railroads — are kind of like the tortoise in Aesop’s famous fable versus Tesla as the hare. They might not seem as exciting, but they could ultimately win the race.
I also fully expect Warren Buffett and his team to have ample opportunities to put Berkshire’s $325 billion cash stockpile to work over the next few years. Buffett isn’t buying many stocks these days because of valuation concerns. It’s just a matter of time, though, before a market downturn creates more bargains the legendary investor could like.
My prediction could fall flat on its face if Tesla’s robotaxi market is as huge as Ark Invest CEO Cathie Wood thinks. However, Tesla is a laggard in the market, trailing well behind Alphabet‘s Waymo unit. Meanwhile, competition in the EV market is also increasing. I think Buffett and Berkshire are safer, steadier bets than Elon Musk and Tesla.
Broadcom (NASDAQ: AVGO) has more ground to cover to become larger than Tesla. However, its market cap of around $810 billion puts the semiconductor maker within striking distance.
Artificial intelligence (AI) should continue to serve as a major tailwind for Broadcom. The company’s ethernet networking equipment and custom AI accelerators will likely enjoy strong, growing demand over the next decade. I look for Broadcom’s acquisition of VMware to pay off handsomely, too.
Broadcom is one of the most attractively valued AI stocks, with a price-to-earnings-to-growth (PEG) ratio of 1.22 based on five-year growth projections from analysts surveyed by LSEG. By comparison, Tesla’s PEG ratio is a sky-high 9.42.
For my prediction about Broadcom leapfrogging Tesla to come true, AI demand must increase from the current already high level. I think that’s a real possibility, though, especially if key breakthroughs are made in the use of AI agents and perhaps in artificial general intelligence (AGI).
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