Prediction: This Company Is All Set to Hit a $5 Trillion Market Cap in 2026 (Hint: It's Not Nvidia)

2 hours ago 1

Harsh Chauhan, The Motley Fool

Sat, December 20, 2025 astatine 11:50 AM CST 5 min read

  • Microsoft's banal needs to admit by 41% from existent levels to execute a $5 trillion marketplace cap.

  • The company's AI tools are gaining terrific traction successful the productivity space, portion its unreality concern is besides booming.

  • Dan Ives of Wedbush expects Microsoft to go a $5 trillion institution adjacent year, and it won't beryllium astonishing to spot the institution so hitting that milestone.

  • 10 stocks we similar amended than Microsoft ›

Nvidia (NASDAQ: NVDA) concisely became the archetypal institution to transverse a $5 trillion marketplace headdress conscionable a mates of months ago, driven by the company's singular gross and net maturation connected relationship of its dominance of the artificial quality (AI) spot market.

However, the stock terms of the spot elephantine has pulled backmost since then, adjacent though it continues to support terrific maturation contempt its monolithic size. Concerns astir the AI roar becoming a bubble and the sustainability of the dense infrastructure spending that has driven Nvidia's phenomenal maturation implicit the past 3 years person begun to measurement connected the stock.

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But there's different institution -- Microsoft (NASDAQ: MSFT) -- that's making the astir of the proliferation of AI. One expert believes that this "Magnificent Seven" institution could deed a $5 trillion marketplace headdress successful 2026. Let's instrumentality a person look astatine Microsoft's prospects and wherefore it could deed the $5 trillion marketplace headdress milestone successful the caller year.

Microsoft logo connected  a achromatic  background.

Image source: Getty Images.

There is nary denying that Nvidia's chips person played a important relation successful the wide adoption of AI technology. However, the computing powerfulness provided by its chips is yet harnessed to make customer-facing solutions. For example, grooming OpenAI's ChatGPT wouldn't person been imaginable without Nvidia's chips, but the chatbot became fashionable due to the fact that of what it was doing for users.

From helping users constitute emails to creating images to drafting documents and penning code, ChatGPT's versatility and productivity person been the cardinal reasons down its raging success. Not surprisingly, ChatGPT genitor OpenAI points retired that it present has much than 1 cardinal paying endeavor customers, portion much than 800 cardinal users usage ChatGPT each week.

Microsoft made a astute determination successful 2019 by investing successful OpenAI. It inactive holds a 27% involvement successful OpenAI, a institution reportedly worthy $500 billion. However, much than the fiscal aspect, OpenAI provided Microsoft with entree to ample connection models (LLMs) and applications, enabling it to physique a wide portfolio of AI-powered tools and deploy them crossed its offerings.


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