Tech Surge: Top 25 Companies Add $2 Trillion to Market Cap in Second Quarter

Top 25 global technology companies added a combined $2 trillion to their valuation during the second quarter, even as other business segments faded in comparison. The top 25 global tech companies added a whopping $4.5 trillion to their valuation in the first half of 2023, numbers released by GlobalData showed.

Tech Surge

Leading the tech surge were companies like chip major Nvidia, Meta, Oracle and Amazon. Among them, Nvidia added more than 50 percent to its market capitalization in the second quarter. The valuation of the tech giant, which was boosted by the explosion of interest in artificial intelligence late last year, has already made 200 percent increase since January 2023.

nvidia studio
Nvidia Studio YouTube grab

"Nvidia continued to spearhead the surge. The company, which witnessed over 90 per cent increase in market value in Q1 2023, had another impressive quarter, recording a 52 per cent increase in market value in Q2 2023," Gracio Benher, analyst at GlobalData, said.

While Meta's valuation rose nearly 34 percent), Oracle made a 29 percent rise and Amazon 26 percent, the data by the analytics company showed.

"Looking ahead, tech companies offering hardware and software solutions for AI tools and cloud-based solutions are likely to witness market rally for their stocks," Benher added, according to IANS news agency.

Oracle YouTube grab

A report showed in July that the rising interest in artificial intelligence technologies has created an unprecedented boom in the stock market. The market value of the top seven companies with a stake in AI technologies has zoomed to $11 trillion, registering a staggering 60 percent growth so far this year.

Tencent, Qualcomm and Cisco Slump

The US stock markets saw a rare rally in recent months, fuelled by the bullish sentiments over AI's impact on businesses and profits. A recent Societe Generale analysis found that if some 20 stocks whose ownership is tied to AI-related exchange-traded funds were removed from S&P500, the index would report a 40 percent drop this year.

However, some tech companies faced a downturn during this phase as well. They include Tencent, Qualcomm and Cisco, the report says. While Tencent was impacted by a slowdown in the Chinese economy, Qualcomm was affected by a severe slump in mobile handset sales globally.