Prediction: 1 Stock That'll Be Worth More Than Nvidia 5 Years From Now

Market capitalization is the total value of a company's stock, or the amount of shares multiplied by the share price. It doesn't tell you anything about a company's performance or prospects, but it does tell you what the market thinks of it, to some extent. The more favored a stock is, the likelier it is to have a high market cap. However, most newer companies have lower market caps because they haven't even started growing. So, it's a combination of investor sentiment and a proven track record.The most valuable companies on the stock market by far these days are big tech stocks, with the top three slots going to Apple, Nvidia, and Microsoft, although those three slots have changed hands a few times over the past few months. But you might be surprised that the next tier of most valuable companies are mostly large, older value stocks, like Berkshire Hathaway (which just achieved trillion-dollar status), Walmart, and Visa.Nvidia stock is up 250% over the past year, which is how it jumped past older standards to reach the top of the market cap heap. It's on fire as clients line up to buy its graphics processing Units (GPU) that power generative artificial intelligence (AI), reporting fabulous sales and earnings growth. But are competitors catching up?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool