Apple, Microsoft, Alphabet, Amazon and other tech giants to add USD 2.4 to their market cap in 2023 due to AI: Report

San Francisco: Nvidia enters trillion-dollar club, US chip maker now worth more than $1 trillion. Tech giants like Apple, Microsoft, Google-parent Alphabet, Amazon, Nvidia and others added $2.4 trillion to their market capitalization in a year amid the buzz over generative artificial intelligence (AI), a new report has revealed. According to venture capital firm Accel, share price values of these big technology firms increased an average of 36 percent (year-over-year).

For the first time, Nvidia entered the trillion-dollar club, with the US chip maker now worth more than $1 trillion. Nvidia’s high-performance CPUs enable many advanced generative AI models, generating new content from massive amounts of training data. The report also noted that cloud and software-as-a-service (SaaS) firms like Salesforce, Palantir and Unity have grown 29 percent so far this year.

Last year, the outlook for cloud and SaaS was down. According to the report, companies lost $1.6 trillion in value as investors exited high-growth tech stocks. Additionally, the report showed that the tech-heavy Nasdaq Composite recovered 80 percent of its all-time high within 18 months. It took Nasdaq almost 14 years to reach that milestone.
Funding for cloud and SaaS firms in Europe, Israel and the US has also returned to pre-Covid levels. Additionally, the report said the number of unicorn companies has returned to pre-COVID levels, with AI accounting for a significant portion of the new billion-dollar companies. In Europe and Israel, 40 percent of the new unicorns were in generative AI, while 80 percent were in the US.