On February 28th local time, the total market value of six stocks in the US stock market, including Microsoft, Apple, Nvidia, Amazon, and Google's parent company Alphabet-A and Meta, has exceeded trillions of dollars, all of which are technology stocks. It is worth mentioning that Tesla's total market value exceeded trillions of dollars in 2021, but as stock prices fell, its total market value has shrunk to over 600 billion dollars.
The total market value of the six technology giants mentioned above has rapidly increased recently, reaching a total of $12.5 trillion. Deutsche Bank analysts say that the total market value of the six major technology stocks is almost twice the total market value of the Japanese stock market, making it the world's second-largest national securities exchange.
Data source: Wind As of February 28th local time
Deutsche Bank analysts say that technology giants have become increasingly stable in the US stock market rankings, with Microsoft, Apple, Google, and Amazon remaining in this position for the majority of their time after entering the top five.
From the perspective of the company's specific business, the proportion of cloud services and AI in the business of technology giants is constantly increasing, becoming the most critical technological highlands. "This is a catalyst for artificial intelligence themes to drive market psychology, providing a long-term rather than cyclical new theme for the most important industry in the world's largest stock market," said Christopher Wood, Global Head of Equity Strategy at Jeffrey
Overall, Nvidia and Microsoft are undoubtedly the biggest beneficiaries of generative AI. Nvidia's latest financial report exceeded expectations in all aspects, with Microsoft's intelligent cloud business achieving quarterly revenue of $25.8 billion. AI technology has also to some extent boosted the financial reports of Amazon and Meta. Although Tesla sees itself as an artificial intelligence giant, the market still believes that its core business is manufacturing cars, which is one of the reasons why Tesla's stock price has fallen behind this year.
However, Deutsche Bank warns investors to be aware of the potential risks posed by the concentration of technology giants to the US and global markets. The bank said that the concentration of the US stock market was equivalent to the level in 2000 and 1929, which experienced the "Internet foam" and "big stock disaster" respectively.