Market capitalization of top 10 AI companies increases by 54 trillion following ChatGPT launch
In the week bridging November and December 2022, OpenAI unveiled its groundbreaking artificial intelligence platform, ChatGPT, ushering in a wave of transformation across various industries and even influencing the dynamics of the stock market. The impact of the AI revolution can be vividly seen through the market capitalization surge of the top 10 companies deeply immersed in this technology.
Research by Finbold revealed that from December 3, 2022, to June 5, 2024, these companies collectively experienced a staggering growth of $5.4 trillion in market cap. Among the standout beneficiaries of this AI frenzy was the renowned chipmaker Nvidia (NASDAQ: NVDA), whose market capitalization skyrocketed from $420 billion to an impressive $2.8 trillion.
However, Nvidia was not the sole entity to witness remarkable expansion due to the AI wave, with tech titan Microsoft (NASDAQ: MSFT) also making significant strides by aligning with OpenAI early on in 2019. This strategic partnership bolstered Microsoft’s AI capabilities and contributed to substantial market cap growth.
An intriguing trend observed in the realm of AI company growth is the notable concentration of wealth within a select few players in the market. Nvidia alone accounted for roughly 45% of the total growth among the top 10 companies, amounting to $2.4 trillion. The remaining 55% of growth was largely dominated by Microsoft, Alphabet (NASDAQ: GOOGL), and Meta Platforms (NASDAQ: META).
As of June 5, 2024, the combined market cap of the top three firms – Microsoft, Nvidia, and Alphabet – stood at $8.1 trillion, constituting nearly 79% of the total $10.3 trillion market cap. Adding Meta and Tesla (NASDAQ: TSLA) to the mix raised this figure to 95.77%, with a collective market cap of $9.8 trillion. In contrast, the bottom three companies made up a mere 0.81% at $83.32 billion.
Although the integration of AI technologies and buzzwords has become a popular tactic for companies aiming to captivate investors, Finbold’s analysis underscores that artificial intelligence is not a one-size-fits-all solution for businesses in need of growth. Despite the success stories of companies like Nvidia, Meta, and Palantir, some firms have experienced stock declines even with their involvement in cutting-edge technologies.
For instance, Tesla Motors, led by Elon Musk, has seen a $48 billion decrease in market capitalization since the onset of the AI boom, despite its advancements in electric vehicles and AI-driven autonomous technology. Likewise, Intel’s subsidiary Mobileye, focused on AI-powered driver assistance, has also witnessed a decline in stock value post-2022. Even Adobe, which has shown growth since the advent of ChatGPT, experienced a significant $70 billion drop in market cap in 2024, highlighting the complex nature of AI-driven market trends.
