7 major companies added $4.27 trillion to their market value during H1

The seven largest companies added a total of another $4.27 trillion to their market value from January 2 to the close of July 1, 2024, during the first half, according to calculations based on Refinitiv data.

According to CNN, the “Great Seven” is a term given to the seven largest companies with market value in the technology sector in the United States, which are: NVIDIA, Microsoft, Apple, Amazon, Alphabet, Meta, and Tesla.

The technological boom in the field of artificial intelligence was the main reason behind Nvidia’s gains, which recorded an increase of about 154.4% from the beginning of the year until the close of July 5, 2024, benefiting from sales of graphics processing units dedicated to artificial intelligence programs and applications for data centers and application developers.

Major companies use Nvidia’s advanced chips and graphics processing units to build their data centers, led by Microsoft, which supports Open AI, along with Amazon and Alphabet.

Thanks to this, Nvidia’s revenues in the first quarter of fiscal year 2025, which ended on April 30, 2024, exceeded market expectations, which amounted to $26 billion, an increase of about 262%, driven by a 427% rise in data center revenues.

The technology giant, whose market value exceeds $3 trillion, also announced plans to sell $12 billion worth of artificial intelligence chips in China this year, defying US restrictions on advanced chip exports to the world’s second-largest economy.

NVIDIA was not the only one that benefited from the development of artificial intelligence, as shares of Meta Platforms, the parent company of Facebook, Instagram, and Threads, jumped by about 52.5% in the same period, and Alphabet, the owner of Google, and Amazon came in third and fourth places, with an increase of about 36.2% and 31.6%. Respectively.

Microsoft and Apple shares also increased by 24.3% and 17.6% by the end of July 5, while Tesla came in last place, recording an increase of about 1.2% in an attempt to recover from its losses witnessed in the first quarter of 2024.

Outside this list, some other technology companies emerged with strong gains, including Broadcom and Netflix, which achieved gains of about 52.5 percent and 41.9 percent, respectively, followed by Oracle and AMD with an increase of 37.4 percent and 16.6 percent, respectively.

Last June, Apple announced a partnership with Microsoft-backed OpenAI to integrate the “GPT Chat” program into future iPhone devices. Against the backdrop of this news, the company’s value jumped for a short period, surpassing Nvidia and Microsoft, before Microsoft returned to the lead again. .

Apple is also discussing with its counterpart, Meta, plans to integrate the latter’s generative artificial intelligence system into Apple Intelligence features, according to what the Wall Street Journal reported on Sunday.

Tesla shares were able to rebound after reaching a 52-week low in April, pressured by a decline in electric vehicle sales in the first quarter and the company’s tendency to downsize from widespread layoffs.

But the stock rose again by about 27.1 percent during the week ending July 5, 2024, after an increase of 11.12 percent in June, so it was able to compensate for its early losses.

The recovery came with a boost from data that revealed that Tesla delivered a better number of electric cars than expected in the second quarter of 2024, and although deliveries still decreased by 4.8 percent from the previous year, the decline was less severe than its counterpart in the first quarter, which gave Investors have reasons for optimism as the second half approaches.

Tesla is scheduled to announce its financial results for the second quarter on July 23.