A lucrative $1 trillion opportunity in the stock market is expected to be driven by the aging baby boomers, according to Mizuho. By 2030, Americans over 75 years old are projected to make up 10% of the population. Spending by this group is anticipated to increase by over $1 trillion in the next five years.

Mizuho's US team pointed out the emerging trend of "aging intelligence," highlighting the potential significant contributions that the aging population in the US could make to total consumer spending. This shift presents investors with a major opportunity, as seniors are forecasted to account for a larger portion of consumer spending, representing a $1 trillion opportunity with spending by the 75+ age group expected to grow at twice the US average.

The number of Americans over 75 is projected to grow annually by 4%, with estimations indicating they will constitute 10% of the total population by 2030. Furthermore, consumer spending by this age group is predicted to surge by 87% from 2023 through 2030, exceeding $1.3 trillion by the end of this period.

Mizuho sees the aging US population, dubbed the "Silver Tsunami," as a significant but often overlooked trend. They emphasized the importance of companies focusing on this demographic shift, with "Aging Intelligence" set to become a differentiating factor. The bank also identified certain spending categories likely to thrive in the aging population trade, with medicines, insurance, hospitals, and medical devices being among the anticipated winners.

Mizuho pinpointed 10 companies that could benefit from this demographic shift, with potential average upside of 35% over the next year. The recommended stock picks to capitalize on this trend include Biogen Inc., DoorDash, Inc., Encompass Health Corp, EyePoint Pharmaceuticals, Inc., The Home Depot, Inc., Robinhood Markets, Inc., and Glaukos Corporation.