$9.2 trillion m-cap of Nvidia, Microsoft and Apple now bigger than China's stock market
Microsoft, Nvidia, and Apple have a combined market capitalisation surpassing that of China's stock market, totaling $9.2 trillion. The tech giants, fueled by investor demand for AI exposure, have seen record highs in their stock prices. Nvidia recently reached a market cap of $3 trillion, with Microsoft investing in OpenAI and Apple showing signs of improvement despite recent challenges. Investors are drawn to the companies' competitive positions but caution is advised due to high valuations.
, and are now worth more combined than 's .With a total of about $9.2 trillion, the three most valuable tech firms have overtaken all of the nearly $9 trillion worth of stocks actively traded on Chinese exchanges excluding Hong Kong, according to data .
Investor demand for artificial intelligence exposure has propelled many shares in the sector to record highs. Nvidia - arguably the biggest beneficiary of a massive flood of spending of the past year - saw its market capitalisation hit $3 trillion this week, becoming the first computer-chip firm to do so.
The California-based company has dominated the market with its highly sought-after products that help power running complex AI computing tasks. Meanwhile, Microsoft has invested in and is infusing AI features in its products and services.
Apple has not had the strongest showing this year as the 's shares were pressured by concerns over cooling in China and a $2 billion fine from the . However, shares in the company have just turned positive for 2024 as toward the iPhone maker slowly improves. "Momentum and growth seekers will be content to trust in Microsoft, Apple and Nvidia owing to their powerful competitive positions, fat profit margins and strong balance sheets," said Russ Mould, investment director at .
"The danger here is to mistake reliability for safety, again because a very lofty valuation can leave a share price exposed on the downside if expectations are very high and something unexpected happens," said Mould.
Bloomberg
Source: Stocks-Markets-Economic Times
