Seven companies with market capitalizations of over a trillion dollars, worldwide

The American chip manufacturer Nvidia became, on June 18, the most valuable company in the world, with a market capitalization of more than 3.3 trillion dollars, overtaking the software company Microsoft, in the context in which investors pay more and more attention increased role of artificial intelligence in the global economy in the coming years.

A ranking made by Statista, based on data from companiesmarketcap.com, shows that, globally, there are seven companies that have a market value of over one trillion dollars. The June 18 figures put Nvidia in first place, with $3.34 trillion, followed by Microsoft, with $3.32 trillion, tech giant Apple, with $3.29 trillion, the Alphabet group (owner of Google), with $2.17 trillion, online retail giant Amazon.com at $1.90 trillion, Saudi oil group Aramco at $1.79 trillion, and tech company Meta (owner of Facebook) at $1.27 trillions of dollars.

According to the quoted source, the reasons for the increases of the seven companies with values over one trillion dollars are as follows:

- Nvidia - industry leader in chips for data centers, essential for training artificial intelligence;

- Microsoft: dominance in enterprise software products (eg Windows, Office, Azure);

- Apple: solid history of innovation and a large base of loyal customers;

- Alphabet: top player in online advertising and other digital platforms (for example, Google Search, Youtube);

- Amazon: dominance in e-commerce and growing market share in the cloud computing area, through Amazon Web Services (AWS);

- Saudi Aramco: the largest oil producer in the world, with massive reserves;

- Meta: dominant player in the area of social networks (Facebook, Instagram, Whatsapp).

• TSMC, expected among the companies with a value of one trillion dollars

With a current market value of $932 billion, Taiwan Semiconductor Manufacturing Co. (TSMC) of Singapore, a Taiwanese semiconductor manufacturer, is expected to enter the ranks of companies with a capitalization of one trillion dollars. Other contenders for the top trillion-dollar companies are investment group Berkshire Hathaway ($881 billion), pharmaceutical company Eli Lilly ($847 billion) and semiconductor and infrastructure software provider Broadcom ($839 billion). Since the beginning of this year, TSMC shares have risen by 77%, Eli Lilly - by 51%, and Broadcom - by 66%.

• Bogdan Maioreanu, eToro: "The battle for artificial intelligence is powered by Nvidia"

Nvidia is emerging as one of the main beneficiaries of the battle between the artificial intelligence (AI) software giants, and the fact that this company has become the most valuable in the world is no accident, according to an eToro analysis. According to the cited source, Nvidia is the engine fueling AI development.

Bogdan Maioreanu, analyst and market commentator of eToro, states: "Some analysts say that it controls over 80% of the market for graphics chips used in AI systems and data centers. And the race for the most useful AI technology is still early on, driving demand for new chips and processing power. Artificial intelligence has certainly moved to the top of the agenda of company management. Two-thirds of CEOs believe it will take at least two years for artificial and generative intelligence to outgrow the hype, according to a Boston Consulting Group study. All of this research will need processing power favoring chipmakers, including Nvidia.

Generative artificial intelligence has given birth to a world of new business opportunities, and CEOs are eager to take advantage of them. Nearly three-quarters (71%) of business leaders surveyed by BCG analysts say they plan to increase their company's technology investments this year, and an even higher percentage (85%) say they will increase spending on artificial intelligence and generative artificial intelligence in 2024. According to the survey, 89% of executives rank AI and generative AI as among the top three technology priorities for 2024, and 54% expect AI to drive cost reductions. Of these, approximately half anticipate reducing costs by more than 10%, mainly by increasing productivity in the area of operations, that of customer services and IT".

According to Mr. Bogdan Maioreanu, the same study shows that organizations that plan to invest more than $50 million in AI or generative AI next year are 1.3 times more likely than their competitors to realize cost savings and 1.5 times more more likely to reduce their costs by more than 10%, and this is essential for the continued development of AI, to show how useful it can be for companies and what impact it can have on the global economy.

The representative of eToro concludes: "The increase in the price of Nvidia shares is due to the increased interest of investors in the field of artificial intelligence, they understand that the company will benefit from the investments in the new technology that are made around the world. Thus, investors are attracted by the perspectives offered by artificial intelligence, but also by the potential for increased profits, according to an eToro Retail Investor Beat survey. And Nvidia offers both."