Market capitalization of top 10 AI companies increases by 54 trillion following ChatGPT launch
OpenAI’s highly-anticipated artificial intelligence platform, ChatGPT, made its debut in the final week of November 2022, ushering in a new era for many companies and reshaping the dynamics of the stock market. The impact of the AI revolution can be vividly illustrated by examining the market capitalization of the top 10 technology companies.
Research conducted by Finbold revealed that these companies experienced a staggering $5.4 trillion increase in market cap from December 3, 2022, to June 5, 2024. Among the frontrunners of the AI frenzy was Nvidia, a leading semiconductor powerhouse, whose market value skyrocketed from $420 billion to an astonishing $2.8 trillion.
While Nvidia’s ascent was remarkable, it was not the sole beneficiary of the AI surge. Microsoft, an early supporter and collaborator of OpenAI, significantly bolstered its AI capabilities, resulting in substantial market growth. However, the exponential growth in the AI sector remains heavily concentrated among a handful of key players.
Nvidia alone contributed $2.4 trillion to the overall growth of the top 10 companies, representing 45% of the total increase. Microsoft, Alphabet, and Meta Platforms also dominated the landscape, collectively accounting for a significant portion of the market cap growth.
As of June 5, 2024, the top three companies, Microsoft, Nvidia, and Alphabet, commanded a combined market cap of $8.1 trillion, comprising nearly 80% of the total market capitalization. In contrast, the bottom three companies held a minuscule share of just 0.81% at $83.32 billion.
Despite the buzz surrounding AI and its transformative potential, not all companies have reaped the rewards. While giants like Nvidia and Meta thrived, others, like Tesla Motors and Mobileye, have faced challenges. Tesla, despite its groundbreaking work in EVs and AI, experienced a significant market cap decline following the AI boom. Similarly, companies like Intel’s subsidiary Mobileye and Adobe have also seen fluctuations in their market values despite the AI-driven advancements in the industry.
In conclusion, while AI has become a ubiquitous buzzword in the corporate world, its implementation does not guarantee success for all companies. The landscape is competitive, and companies must navigate carefully to capitalize on the AI revolution and secure their position in the evolving market.
