The tech industry is currently experiencing an unparalleled phenomenon. The growth of Microsoft and Apple, the world’s two most valuable companies, is surpassing all expectations, and it’s poised to continue ascending in the foreseeable future, driven by their AI-powered products and services. Together, the combined market capitalization of these two giants has outstripped the total market capitalization of the 3,851 listed companies on the Indian stock exchange.
Microsoft and Apple, with a combined market capitalization of $6.14 trillion, have exceeded the combined value of actively traded companies on the Bombay Stock Exchange, which amounts to $5.06 trillion.
In contrast, when comparing the market capitalization of Microsoft and Apple to India’s top two companies, Reliance Industries and Tata Consultancy Services (TCS), we see a significant difference in value. Reliance is currently valued at $240.44 billion, while TCS is valued at $167.26 billion.
What’s even more astonishing is how the collective market worth of the world’s three two companies exceeds the market value of not only Indian public firms but also those in China. Interestingly, the combined market worth totalling $9.2 trillion for the top three US companies – Microsoft, Apple, and Nvidia – now exceeds that of over 5,300 companies valued at $8.85 trillion on the Chinese stock exchange, as per Bloomberg data.
Now, let’s understand which of these top three companies in the world is making the most significant contribution to their collective market dominance and how they’re doing it!
Examining the Titans: Microsoft, Apple, and Nvidia
Microsoft Corp (NASDAQ: MSFT) is currently the world’s most valuable company with a $3.15 trillion market capitalisation. Its share rose 14.29% YTD, to $423.85 on June 10, 2024. The company, once known primarily for its software dominance, has strategically positioned itself at the forefront of the artificial intelligence (AI) revolution. Their partnership with OpenAI, a leading research lab, has fueled the development of groundbreaking AI tools and applications.
The market cap of Apple, Inc. (NASDAQ: AAPL) is $3.02 trillion, with its share price having surged 6.06% YTD, to $196.89 as of June 10, 2024. Despite encountering notable challenges, such as declining demand for iPhones in China and a hefty $2 billion EU antitrust fine, the company managed to restore market positivity in 2024.
Apple’s success story extends far beyond hardware. The company has cultivated a robust software and services ecosystem through subscriptions and app stores, generating recurring revenue streams that provide stability and fuel future growth. This diversification allows them to weather temporary market fluctuations and emerge even stronger.
On June 10, at WWDC24, Apple is expected to showcase some Gen-AI-powered tools for its products.
Nvidia Corp (NASDAQ: NVDA), another key player in the AI sector, has witnessed an extraordinary 150.96% surge in its stock price year-to-date. The semiconductor company recently achieved a significant milestone by becoming the world’s second-most valuable company, with a market capitalization of $3.011 trillion, surpassing Apple. Their cutting-edge graphic processing units (GPUs) form the backbone of complex AI computations, making them the go-to choice for data centers worldwide.
Industry analysts have already predicted that Nvidia is poised to surpass Microsoft and become the world’s most valuable company in the next few months, fueled by its staggering growth in revenue, net profit, and stock prices.
Nvidia’s jaw-dropping valuation, which is ballooning at a staggering pace and seems unstoppable for months to come, is already the talk of the town. In a record time of just six months – from January 2024 to June 2024 – Nvidia added $1.5 trillion to its total valuation. To keep things in context, it took nearly four years for Apple and Microsoft to increase their valuations from $1.5 trillion to $3 trillion.
In conclusion, the dominance of the world’s top three titans – Microsoft, Apple and Nvidia – in the stock market raises a fascinating question: Are Indian companies lagging behind in innovation? As AI continues to evolve and permeate every facet of our lives, we can expect these companies to push the boundaries of innovation even further. The race for AI supremacy has only just begun, and the impact on our world promises to be nothing short of transformative.
