Top Mega Cap Stocks
Stocks come in various sizes, but the largest ones are known as mega caps. These are stocks with the highest market capitalizations, often exceeding $200 billion. Although the exact threshold can vary, mega cap stocks are generally the biggest and most globally influential companies.
What is a mega cap stock?
A mega cap stock is typically defined as a company with a market capitalization greater than $200 billion. While the term “mega cap” is used to describe these colossal companies, it’s distinct from small-cap, mid-cap, and large-cap stocks, which refer to companies of different sizes.
Mega cap stocks are usually well-established firms with substantial revenues, often reaching into the tens of billions of dollars. Prominent examples include household names like Apple, Amazon, and Tesla, as well as less familiar giants like Berkshire Hathaway and Broadcom. These companies often have a global footprint, with operations spanning multiple regions.
In broad market index funds, such as those tracking the S&P 500, mega cap stocks make up a significant portion of the portfolio. For instance, as of July 2024, Apple and Microsoft together accounted for over 13% of Vanguard’s S&P 500 ETF. Investors might already have substantial exposure to these mega cap companies through their investments without even realizing it.
Top mega cap stocks
1. Apple (AAPL)
Apple has built its empire on the success of iconic products like the iPhone, iPad, and AirPods. With a global reach and a loyal customer base, the company generates nearly $400 billion in annual revenue. Its products are a staple for many, driving consistent sales year after year.
- Market Cap: $3.36 trillion
- Annual Revenue: $383.3 billion
2. Microsoft (MSFT)
Microsoft is a major technology player known for its software, including the Office suite and Windows operating system. The company also operates a thriving cloud business and owns LinkedIn. Its investment in AI, including a stake in OpenAI (the owner of ChatGPT), underscores its role in shaping the tech landscape.
- Market Cap: $3.09 trillion
- Annual Revenue: $245.1 billion
3. Nvidia (NVDA)
Nvidia specializes in high-performance graphics processing units (GPUs) used in gaming, animation, and artificial intelligence. Its technology has been pivotal in driving advancements in AI, propelling both its business and stock value. Nvidia’s revenue is expected to surpass $125 billion in the coming year.
- Market Cap: $2.70 trillion
- Annual Revenue: $60.9 billion
4. Amazon (AMZN)
Amazon is a giant in online retail and cloud computing through its Amazon Web Services (AWS) division. It offers membership benefits such as free two-day shipping and access to its streaming service, enhancing customer loyalty and driving revenue.
- Market Cap: $1.87 trillion
- Annual Revenue: $574.8 billion
5. Alphabet (GOOGL and GOOG)
Alphabet, the parent company of Google, is renowned for its search engine, which generates substantial advertising revenue. It also owns YouTube and Google Cloud, and invests in various “other bets” that could become significant business contributors.
- Market Cap: $1.85 trillion
- Annual Revenue: $307.4 billion
6. Meta Platforms (META)
Formerly Facebook, Meta Platforms is the leading social networking company with platforms like Facebook, Instagram, and WhatsApp. It capitalizes on its extensive user base by selling highly effective advertising, which continues to grow in importance.
- Market Cap: $1.28 trillion
- Annual Revenue: $134.9 billion
7. Berkshire Hathaway (BRK.B)
Led by Warren Buffett, Berkshire Hathaway owns a diverse portfolio of businesses, including auto insurer Geico, the BNSF railroad, and various energy and insurance companies. Its broad range of investments and acquisitions contribute to its substantial revenue.
- Market Cap: $967.5 billion
- Annual Revenue: $364.5 billion
8. Eli Lilly and Company (LLY)
Eli Lilly, based in Indianapolis, focuses on pharmaceuticals, with recent success in anti-obesity treatments like Zepbound. This drug is expected to significantly impact the company’s revenue in the coming years.
- Market Cap: $816.5 billion
- Annual Revenue: $34.1 billion
9. Tesla (TSLA)
Tesla is a major player in the electric vehicle market, known for its popular models and innovative technology. Under Elon Musk’s leadership, Tesla’s stock has seen dramatic fluctuations, reflecting the company’s rapid growth and evolving market presence.
- Market Cap: $711.0 billion
- Annual Revenue: $96.8 billion
10. Broadcom (AVGO)
- Broadcom designs and develops semiconductor and software solutions. The company recently expanded its reach by acquiring VMware in a $69 billion deal, enhancing its position in the tech industry.
- Market Cap: $682.8 billion
- Annual Revenue: $35.8 billion
