2 Trillion-Dollar Stocks That Could Soar by 40% and 50% Over the Next Year, According to Wall Street Analysts

Wall Street analysts publish their one-year price targets for the companies that they cover, and retail investors can use that information to source ideas for stocks that have unusually high upside potential. Normally, the larger a company becomes, the harder it is for that company to grow at a rapid percentage rate, so finding stocks in the trillion-dollar-plus market cap range with big upside isn't common. However, according to the consensus among analysts, two megacaps do have huge upside in the near term: Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT).

According to Yahoo! Finance, Nvidia and Microsoft have average one-year price targets of $256 and $596, respectively. From their closing prices on Monday, those targets indicate about a 40% upside for the chipmaker and a 50% upside for the diversified tech giant. With the long-term annualized average return of the market hovering around 10%, that suggests that these two stocks are no-brainer buys.

Image source: Getty Images.

Nvidia continues to post incredible results

Nvidia is the horse that just keeps on running. Although many investors are growing fatigued by the constant barrage of news about high levels of AI spending, Nvidia shareholders aren't. The graphics processor unit leader reaps a large share of the benefits from all the money being spent by AI hyperscalers, and is growing rapidly as a result.

In its fiscal 2026 fourth quarter, which ended Jan. 25, its revenue rose an impressive 72% year over year. That's a growth rate that software companies with under a $1 billion in quarterly revenue would be thrilled with, yet Nvidia is doing it as a multitrillion-dollar behemoth.

Management also gave a highly positive outlook for the year to come. For fiscal 2027 Q1, it expects revenue of $78 billion. That would amount to 77% growth year over year. (And that guidance figure doesn't include any potential revenue from China, a market that could come back for the company.) So not only is it expecting to grow rapidly, it forecasts that its growth will speed up. Furthermore, the AI buildout isn't expected to wrap up in 2026; many project that it will last through 2030.

This makes Nvidia a no-brainer buy right now, and I won't be surprised to see the stock price skyrocket.

Microsoft hasn't been this cheap in a long time

Microsoft (NASDAQ: MSFT) is having a different problem. It's still a fantastic company and grew its revenue at a 17% clip in its fiscal 2026 second quarter, which ended Dec. 31 -- one of its best results on that front in the past few years.

MSFT Revenue (Quarterly YoY Growth) data by YCharts.

However, despite the company outperforming internal expectations, the market wanted to see more from Microsoft, so the stock sold off heavily following the report. It's now valued near a multiyear low in terms of its price-to-earnings ratio.

MSFT PE Ratio data by YCharts.

Microsoft wasn't even this cheap during the depths of the tariff sell-off last April. The last time it was this cheap was during the marketwide sell-off of 2023, when everyone was convinced a recession was around the corner. It's also cheaper now than it was during another notable sell-off -- the one triggered by the onset of the COVID-19 pandemic. While one could argue that 25 times trailing earnings is still expensive, the reality is that Microsoft represents the best of what the market has to offer, and it's not a terrible price tag considering the company's long-term track record and solid growth rates.

The average $598 price target Wall Street analysts have set for Microsoft's stock is based on a prediction of continued success and its valuation returning to its normal range of 30 to 35 times trailing earnings. If it can achieve both those things, then Microsoft will, in retrospect, look like a genius buy based on valuation alone. However, even if it doesn't, Microsoft can still put up market-beating growth. For the rest of its fiscal 2026 and into fiscal 2027, the average analyst expects 16% and 15% revenue growth, respectively. That would be good enough to beat the market most years, so I'm confident that Microsoft is a solid buy right now.

Keithen Drury has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy.