OpenAI’s ChatGPT AI platform, launched between November and December 2022, had a profound impact on numerous companies and the stock market itself. The market capitalization of the top 10 AI technology companies surged by $5.4 trillion from December 3, 2022, to June 5, 2024.
Nvidia, a prominent chipmaker, experienced remarkable growth as its market capitalization soared from $420 billion to $2.8 trillion. Microsoft also benefited significantly from its early partnership with OpenAI in 2019, leading to substantial market cap growth.
The growth in the AI sector has been notably concentrated, with Nvidia alone contributing 45% of the total growth of the top 10 companies. Microsoft, Alphabet, and Meta Platforms also played significant roles in the market’s expansion.
The top 3 companies, Microsoft, Nvidia, and Alphabet, accounted for 78.64% of the total market capitalization of $10.3 trillion, with Meta and Tesla further increasing the combined market cap to $9.8 trillion. In contrast, the last 3 companies represented only 0.81% of the market cap.
Despite the popularity of AI technology and its potential for growth, it is not a guaranteed solution for struggling companies. Some companies, like Tesla Motors and Intel’s subsidiary Mobileye, have experienced declines in market value despite their involvement in cutting-edge AI-driven technologies.
Even though Adobe’s market capitalization decreased by $70 billion in 2024, it has seen growth since the release of ChatGPT. This demonstrates that while AI technology can lead to significant advancements, it is not a one-size-fits-all solution for all companies in the industry.
