The technology sector continues to be a driving force behind global economic growth and, despite the ongoing challenges posed by geopolitical issues and interest rate hikes, the global top 25 technology companies gained more than $2,4-trillion in valuation in the first quarter (Q1) of 2023.
This is according to new research from analytics company, GlobalData.
“Megacap tech stocks like Apple, Amazon, and Microsoft recovered remarkably from the losses they suffered in 2022 with valuation growing at more than 20% in Q1 2023 compared to Q4 2022,” says Ragupathy Jayaraman, business fundamentals analyst at GlobalData. “The top 10 gainers – Nvidia, Meta, Salesforce, AMD, SAP, Intel, ASML, Amazon, Microsoft, and Apple – reported more than 20% in their quarter-over-quarter (QoQ) valuation.
“Specifically, Nvidia, Meta, Salesforce, and AMD reported more than 50% gain in market cap in Q1 2023,” Jayaraman adds.
Meta, Apple, Amazon, Microsoft, and Google (FAAMG stocks) continue to dominate the top 25 global tech stocks’ valuation contributing more than 60% with $7,7-trillion. These stocks posted more than 15% growth in MCap, in which Meta topped the list with 72% QoQ growth in Q1 2023.
“Enhanced focus on metaverse and strong digital advertising efforts had a positive impact on Meta’s performance,” says Jayaraman. “Apple continued to be the largest tech company in terms of valuation with $2,6-trillion. It gained almost $550-billion in MCap in the first quarter of 2023. Due to supply chain issues and weak demand, the company anticipates a reduction in its shipment targets for the fiscal.”
Microsoft crossed the $2-trillion landmark in August 2022 and, after a tumble in the next few months, it again crossed in March 2023.
Jayaraman continues: “Despite a minor slump in the middle of Q1 2023, Amazon’s stock gained momentum towards the end of the quarter with a $1,06-trillion MCap compared to $856-billion at the end of Q4 2022,” continues Jayaraman. “With an increased focus on stabilising profit margins, Amazon is looking towards various cost-cutting initiatives and business diversification.”
The semiconductor sector recovered in the first quarter with Nvidia, TSMC, Samsung, Texas Instruments, and Intel posting substantial growth. Nvidia outperformed all the other companies in the top 25 global tech stocks with a 91% growth in QoQ valuation.
“Nvidia experienced significant benefits from the rising excitement surrounding artificial intelligence, particularly in the context of ChatGPT,” says Jayaraman. “Additionally, the stability of the data centre business and a cyclical upturn in the gaming industry contributed greatly to its success.”