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AI Gave Tech Giants A $2.4 tn Market Cap Boost
In a year marked by the buzz surrounding generative artificial intelligence, U.S. tech titans saw a $2.4 trillion increase in their market capitalizations, according to a new analysis from venture capital firm Accel.
The share prices of major technology companies including Apple, Microsoft, Alphabet, Amazon, and Nvidia increased by an average of 36% year over year, according to Accel’s annual Euroscape study.
Nvidia has become the first US chip company to be worth over $1 trillion, thanks to its high-performance chips used in advanced AI models. In 2023, the world’s largest technology companies added $2.5 trillion to their market capitalizations, according to Accel data. The Euroscape index, which tracks cloud and SaaS names like Salesforce, Palantir, and Unity, rose 29% year-to-date. Last year, cloud and SaaS companies saw $1.6 trillion in value wiped off as investors rotated out of high-growth tech stocks. However, signs suggest the pressure is easing, with the tech-heavy Nasdaq Composite returning to 80% of its all-time high within 18 months, marking a faster bounce back than after the dotcom bust in the 1990s.
(With inputs from Shikha Singh)
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