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 and December 2022, causing a seismic shift in the business landscape and even influencing the stock market’s dynamics. The impact of the AI revolution can be vividly observed through the market capitalization of the top 10 companies deeply involved in this cutting-edge technology.
Research conducted by Finbold revealed that these companies collectively experienced a staggering $5.4 trillion increase in market cap from December 3, 2022, to June 5, 2024. Among the standout performers in this AI frenzy was the renowned chipmaker Nvidia (NASDAQ: NVDA), whose market value skyrocketed from $420 billion to an impressive $2.8 trillion.
Despite Nvidia’s remarkable ascent, it was not the sole beneficiary of the AI boom. Microsoft (NASDAQ: MSFT) strategically positioned itself as an early supporter and collaborator of OpenAI in 2019, resulting in a substantial boost to its AI capabilities and market capitalization growth.
An intriguing trend that emerges from the data is the disproportionate growth concentration within the AI market. Nvidia alone contributed $2.4 trillion to the overall growth of the top 10 companies, comprising approximately 45% of the total increase. The remaining 55% was largely driven by Microsoft, Alphabet (NASDAQ: GOOGL), and Meta Platforms (NASDAQ: META).
Furthermore, when examining the combined market capitalizations of the top 10 AI companies as of June 5, 2024, Microsoft, Nvidia, and Alphabet collectively commanded a staggering $8.1 trillion, accounting for 78.64% of the total market cap of $10.3 trillion. Including Meta and Tesla (NASDAQ: TSLA) raised this figure to 95.77%, leaving the last three companies with a mere 0.81% share at $83.32 billion.
While AI has become a buzzword and a favored strategy for companies to attract investors, Finbold’s analysis highlights that it is not a panacea for all business woes. Despite the success stories of companies like Nvidia and Meta, some firms have experienced declines despite their involvement in groundbreaking technologies.
For instance, Tesla Motors, led by Elon Musk, has faced challenges despite its innovations in electric vehicles and AI-driven autonomous vehicle technology. Tesla’s market capitalization dropped by $48 billion following the launch of ChatGPT and the subsequent AI boom. Similarly, Intel’s subsidiary, Mobileye, focusing on AI-driven driver assistance, has also witnessed a decline in stock market value since late 2022.
Even Adobe, which saw an increase in stock value post-ChatGPT release, experienced a substantial $70 billion decrease in market capitalization in 2024, indicating that while AI holds immense potential, it is not a guaranteed path to success for all companies.
