Year-ender 2023: Apple, Meta, Alphabet top tech companies with staggering market cap
The tech landscape has undergone a transformation in 2023, with seven major companies now holding significant sway in the market.
image for illustrative purpose
The tech landscape has undergone a transformation in 2023, with seven major companies now holding significant sway in the market. Meta, Amazon, Apple, Alphabet, Microsoft, Tesla, and Nvidia collectively account for 17.2% of the MSCI All Country World Index, reflecting a 74% increase in their combined value during the year. These tech giants, led by Apple with a market cap of $2.97 trillion, contribute to nearly 63% of the ACWI.
Artificial Intelligence (AI) played a pivotal role in this surge, with Nvidia emerging as the primary beneficiary. Nvidia, renowned for its AI chips, experienced a remarkable 196% rise in stocks by September, reaching a market capitalization of $1 trillion. The company's dominance in discreet GPUs, along with substantial growth in its data center business, propelled its annual revenue from $300 million to $15 billion in 2023.
Tesla, a leader in electric cars, witnessed a 158% increase in its share price, solidifying its position in the market as the shift towards electric vehicles gains momentum. Meta, the parent company of Facebook, Instagram, and WhatsApp, marked a 129.29% rise in shares, signaling its strategic focus on AI with models like Llama 2 and anticipated contributions to the AR/VR push.
Alphabet, despite initial setbacks, maintained a robust market value, introducing the Gemini model in 2024. With over 80% market share in search engines, Alphabet demonstrated growth in crowd services and boasted strong membership numbers on platforms like YouTube. Microsoft, closely allied with OpenAI, reached record revenue of $211 billion, aligning its destiny with AI advancements.
Apple achieved a record market cap of nearly $3 trillion, with a 48% increase in stock value. The company is poised to explore Virtual Reality/Augmented Reality (VR/AR) with the Vision Pro headset. Amazon closed the year with a market cap of $1.59 trillion, registering a 76.87% increase in stock value, fueled by its core delivery business projected to handle 5.9 billion packages in the U.S. alone, according to internal estimates.
These tech giants continue to shape the global market, with AI advancements, electric vehicles, and emerging technologies defining their strategic trajectories.