Most stocks aren’t chasing trillion-dollar opportunities. But the three growth stocks below are. If you’re looking for big upside potential, one of these promising investment opportunities should be for you.
Today’s Change
(-0.24%) $-0.03
Current Price
$12.55
Key Data Points
Market Cap
$4.1B
Day’s Range
$11.62 – $12.56
52wk Range
$8.85 – $57.42
Volume
38M
Avg Vol
28M
Gross Margin
19.69%
1. Robotaxis will be a $10 trillion opportunity
According to Ark Invest Chief Executive Officer Cathie Wood, robotaxis will eventually become a $10 trillion global market. “We think US$8 [trillion] to US$10 trillion for the entire autonomous taxi opportunity throughout the world, from almost nothing,” she told reporters last year. “That’s how quickly AI is going to cause these things to happen.”
It’s very likely that Tesla (TSLA +3.93%) will dominate this market. The company has unparalleled access to capital, huge existing manufacturing infrastructure, and a strategic investment in a top-tier AI company, xAI. But I actually think a smaller electric vehicle (EV) stock like Rivian (RIVN +0.28%) could be a better bet. Rivian’s valuation is relatively tiny at $18 billion. Yet the company recently received a $1.25 billion order from Uber Technologies, which will use as many as 50,000 Rivian vehicles to power its own robotaxi division.
Tesla should take a huge chunk of the robotaxi market. But Rivian has more upside potential based on its diminutive market cap.
Image source: Getty Images.
2. Nuclear energy is another $10 trillion opportunity
Robotaxis aren’t the only $10 trillion market opportunity. Analysts at Bank of America also believe that nuclear energy will be a similarly sized market. “[N]uclear energy has, in many ways, been recently ‘rediscovered’ amid surging electricity demand,” a report from the bank concluded. “Compared with other energy sources, it offers reliable baseload power, a smaller carbon footprint, and a higher energy return on investment.”
By far the most exciting way to invest in this opportunity is to target nuclear stocks focused on small modular reactor (SMR) technology. “If commercialized, SMRs would offer five major advantages over conventional, large-scale nuclear power plants (NPPs),” Bank of America observes. Those benefits include better affordability, enhanced safety, modularization, smaller footprint, and reduced CO2 production.
NuScale Power (SMR 0.24%) is the only company approved by regulators to build an SMR system in the U.S. While there are other competing designs currently in the approval process, NuScale has already secured several major customers, including a large electric utility in the U.S.
NuScale has faced major project cancellations in the past. And its first project won’t come online until 2030 at the earliest. But with a market cap of less than $5 billion, NuScale is an ideal high-risk, high-reward investment.
3. SpaceX will create its own trillion-dollar markets
There are various ways to invest in SpaceX ahead of its planned initial public offering (IPO). But next month, the company is expected to go public, making its shares easily buyable by all.
We’re still waiting on a full IPO prospectus from the company detailing its financials and long-term goals. But we already know from announcements that the company is targeting everything from a global satellite-powered mobile-phone service to space-based data centers and even a permanent colony on the moon.
SpaceX is expected to go public at a valuation somewhere between $1.5 trillion and $2 trillion. Reports suggest that it is aiming to raise as much as $75 billion. I’ve already written how this fresh cash will catalyze several investable opportunities. There is no doubt that SpaceX will invest heavily to tap into — and even unilaterally create — several multitrillion-dollar opportunities.
We will have to wait for more filings to be made public to make a fully informed investment decision. But SpaceX has clear “monster stock” potential despite its already gargantuan valuation.
