OpenAI’s groundbreaking AI platform, ChatGPT, made waves in the business world when it was launched in the final week of November 2022. This release not only impacted numerous companies but also had a profound effect on the stock market itself.
An intriguing way to gauge the influence of the AI revolution is by examining the market capitalization of the top 10 companies heavily involved in the technology sector. Research conducted by Finbold revealed that these companies experienced a staggering $5.4 trillion increase in market cap from December 3, 2022, to June 5, 2024.
Among the standout beneficiaries of the AI frenzy was Nvidia, a leading chipmaker, whose market cap soared from $420 billion to an impressive $2.8 trillion. However, Nvidia was not the sole company to witness significant growth due to the AI boom. Microsoft strategically positioned itself as an early supporter and partner of OpenAI in 2019, resulting in substantial market cap growth.
A notable trend that emerged from the data was the disproportionate concentration of growth in the AI market. Nvidia alone contributed around 45% of the total growth of the top 10 companies, with Microsoft, Alphabet, and Meta Platforms dominating the remaining 55%. The combined market cap of the top 3 companies stood at $8.1 trillion, accounting for nearly 80% of the total market cap of $10.3 trillion.
Despite the buzz surrounding AI and its potential benefits, it is not a guaranteed solution for struggling companies. While companies like Nvidia, Meta, and Palantir have thrived, others have faced challenges. Tesla Motors, known for its innovations in EVs and AI technology, saw a decline in market capitalization following the AI boom. Similarly, Intel’s subsidiary Mobileye and Adobe experienced setbacks despite advancements in AI-driven technologies.
In conclusion, the rise of AI has reshaped the business landscape, with some companies reaping the rewards while others face obstacles in leveraging this transformative technology.
