in the always changing landscape of the global economy, the leading companies by market capitalization have become a reason for analysis by investors, market enthusiasts and even casual observers. In the sixth month of 2024, the top 10 of the so-called “megacaps” have had a lot of movement, with the recent entry of Nvidia to the top 3the Tesla exit from top 10 and now, the Apple’s advance to first position after announcing updates based on artificial intelligence.
In recent days, the ranking has registered big changes: Manzana took the tip of the board, Nvidia got into the first three positions, the oil company Aramco left the first five places, Taiwan Semiconductor It rose to number eight, displacing Warren Buffett’s Berkshire Hathaway.
What is the common denominator? artificial intelligencebecause as analysts explain, AI is changing the investment landscape and a very interesting fact emerges from there: 41% of S&P 500 companies mentioned “AI” during the presentation of results for the first quarter of 2024.
AI is a disruptive agent
In other words, 205 companies in the main New York Stock Exchange (NYSE) index mentioned artificial intelligence during this earnings season, vs. 180 and 155 in the fourth and third quarters of 2023, according to Dow Jones Market Data. In just two years, the number of companies mentioning AI in their earnings reports increased by 150%.
Thus, as enthusiasm for AI grew, the S&P 500 reached 26 all-time highs in 2024 and as reported Ambit, Nvidia is the biggest beneficiary of this trend, with revenue from its AI chip-related data centers soaring 427% year over year to $22.6 billion. The future for these companies looks promising.
Artificial intelligence: yes or no bubble
And as it is well explained Ignacio Sniechowski, Head of Equity IEB Group, “there is no bubble” in relation to artificial intelligence. Although he highlights that there may be some stocks that have a certain level of overvaluation, for the strategist AI is truly a paradigm shift that will have a very strong impact on the productivity of developed economies. just as happened with the Internet, PDF and email in the 1990s.
There are also those who still have certain doubts about this new technology, such as Santiago Ruiz GuiñazúHead of Equity Sales Adcapwho states that, Nvidia is a company that, given its characteristics, “could pose an excessive risk for the retail investing public that is not specialized”. The analyst justifies his position in that possibly “in the face of a small deviation in the company’s growth plans, the stock could have a significant correction,” which is why he advises getting advice before making an investment decision.
However, it highlights that The potential of artificial intelligence is evident.which is the valuation engine of Nvidia and the reason why he reached the levels he is at. “The scope of this disruptive technology is still uncertain, especially what has to do with its use and regulation.”, he analyzes.
While, Emilse Cordobadirector of Bell Bursátil, indicates that when taking October 2022 as a starting point, both the S&P 500 and the NASDAQ 100 had a more than unmatched performance and warns: “Although a warming is perceived and on the horizon it could seem a bubble, the truth is that There are robust, solvent companies with a long history, which would dismiss this bubble, in addition to start-ups. The trend of both indices remains intact, which, for long-term positions, we could follow this trend.”
Thus, the recommendation is to follow the trend, but with the radar set on rotating soon, when the slightest sign of an exhaustion of the aforementioned indices is detected, it will be necessary to rotate to defensive positions.
What is the market capitalization of a company?
Market capitalization, sometimes referred to as “Marketcap”, is the value of a publicly traded company. In most cases, it can be easily calculated by multiplying the stock price by the number of shares outstanding.
Although technology companies They seem to dominate the top of the ranking securities, there are other sectors represented, such as oil, insurance, medical companies and luxury brands.
Top 10 companies in the world by market capitalization as of June 12, 2024
Market capitalization: $3.3 billion.
Market capitalization: $3.2 billion
Market capitalization: $3.1 billion
Market capitalization: $2.4 billion
Market capitalization: $1.9 trillion
Saudi Aramco (SAR)
Market capitalization: US$1.8 trillion
- Meta Platforms (Facebook) (META)
Market capitalization: US$1.3 trillion
- Taiwan Semiconductors (TSM)
Market capitalization: US$907.3 million
- Berkshire Hathaway (BRK-B)
Market capitalization: US$888.4 million.
Market capitalization: US$823.2 million
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
