February 29, 2024
Markets Tech

Big Five tech giants add $3.2 trillion to their stock value in 2023

2023 is a breakout year for AI technology globally

It is common knowledge that the global artificial intelligence (AI) industry has registered unprecedented growth in recent years following surging AI adoption across the consumer and business sectors. Yet, it is only 2023 that is proving to be a breakout year for AI due to the explosive use of generative AI tools.

In 2023 alone, the global AI market grew to over a quarter of a billion users and $241 billion in revenue, almost 80% more than in 2022.

Big game changer

PwC reports that AI will be a big game changer in the global economy, and much of the value potential is up for grabs. It is estimated that AI could contribute up to $15.7 trillion to the worldwide economy in 2030, more than the current output of China and India combined.

Of this, $6.6 trillion is likely to come from increased productivity, and $9.1 trillion is expected to come from benefits to consumers.

Meanwhile, the unprecedented adoption and deployment of AI in 2023 across industries is confirmed by the latest annual McKinsey Global Survey on the current state of AI, which indicates that 35% of companies are using AI technologies to conduct their business, with financial services, healthcare, retail, and manufacturing seeing the highest adoption rates.

Everyday life integration

Also, the explosive growth of gen AI tools has ensured that AI has integrated itself into the fabric of everyday life as millions of users use the new technologies for uses as diverse as writing emails to search for solutions to the climate change crisis.

Artificial Intelligence
NVIDIA was the absolute winner in the AI stock values race. Image: Resul Kaya

The AI market’s most prominent players added trillions of dollars to their stock values in 2023, with new data from Stocklytics.com confirming that the world’s five largest AI companies, Microsoft, Alphabet, NVIDIA, Meta Platforms, and Tesla, have added a staggering $3.2 trillion to their stock values this year alone.

According to CompaniesMarketCap data, the combined market cap of Microsoft, Alphabet, NVIDIA, Meta Platforms, and Tesla saw double and triple-digit growth rates, touching a staggering $7.3 trillion last week, or $3.2 trillion more than in January 2023.

NVIDIA, the US-based chip maker, was the absolute winner in the AI stock values race as the company saw its stock value surge by 232% year-to-date, jumping from $364 billion this January to over $1.21 trillion last week.

This denotes that NVIDIA’s stock value has grown more than Meta Platforms, the top performer among the Big Five tech giants.

Meta role

According to Stocklytics.com, Meta has seen the second-largest market cap growth among the five largest AI companies in the world. In January 2023, Meta’s stock value was close to $320 billion. Since then, it has grown by 169% and hit over $860 billion.

In comparison, Tesla, the world’s most valuable car producer and the fifth-largest artificial intelligence company by market cap, recorded the third-largest stock value growth in 2023. Last week, Tesla’s market cap hit $805.8 billion, a 107% increase since the beginning of 2023.

Moving on, the world’s second-largest tech company behind Apple and the most significant player in the AI space, Microsoft, also witnesses its stock price heads north in 2023. The Azure OpenAI Service producer saw a 27% profit increase for the third quarter compared to the same period in 2022, driven by growth in its cloud computing division that specialises in the AI space.

Microsoft’s stock value has been growing throughout 2023. But after it beat Wall Street expectations and reported income of $22.29 billion in Q3, it jumped even further.

The Seattle-based company added one trillion dollars to its market cap this year, rising from $1.79 trillion in January to $2.76 trillion last week. On the other hand, Alphabet, the second-largest artificial intelligence company in the world, saw its stock value grow by 45% or $520 billion in this period, hitting $1.67 trillion last week.

Featured image: Financial services, healthcare, retail, and manufacturing are seeing the highest AI adoption rates. Image: Markus Winkler

    Arnold Pinto

    Arnold Pinto

    Arnold Pinto is an award-winning journalist with wide-ranging Middle East and Asia experience in the tech, space, aerospace, aviation, defence, luxury watchmaking, business, fashion, and automotive verticals. He is passionate about conserving endangered native wildlife globally and protecting the world’s oceans from plastic pollution, overfishing, and climate change. Arnold enjoys 4x4 off-roading, camping and exploring global destinations off the beaten track.
    Follow Me:

    Related Posts

    Leave a Reply

    Your email address will not be published. Required fields are marked *