(BFM Bourse) – In 2023, the giants of American tech have once again shone on the stock market. And over 10 years, the performance is even more impressive, with 5-digit increases for one of them.
As with fashion, financial markets like to unearth new trends. In 2023, generative artificial intelligence (AI) was undoubtedly one of investors’ favorite themes, along with anti-obesity drugs.
And when we talk about AI, eyes are immediately turned to Nvidia. The manufacturer of graphics cards, whose products are used to provide computing power and thus develop conversational robots like Bard and ChatGPT, constitutes the figurehead of the “winners” of generative AI.
Witness to this significant frenzy around its solutions, Nivdia’s revenues jumped 206% year-on-year in the third quarter. On the stock market, the price of the graphics card specialist exploded by nearly 240% in 2023, bringing its market capitalization – the stock market value of all the shares – to more than 1,200 billion dollars, according to data from companiesmarketcap. com. Which makes it the sixth in the world.
Just like Nvidia, AMD is banking on AI and last October took over Nod.ai, a young company specializing in this area. Also a chip specialist, AMD saw its price soar by nearly 130% over the year 2023, thanks to its revenues from its accelerator, MI300, which is intended for artificial intelligence applications.
A prosperous year 2023
Microsoft was the other stock heading into 2023, also driven by the rise of artificial intelligence. Remember that the IT services juggernaut has invested more than $10 billion in OpenAI, the creator of ChatGPT, integrating its generative AI technologies into its services such as Bing, its search engine. And on the stock market, this investment has clearly paid off, with a stock which has gained 57% over 2023.
This increase in the stock pushed Microsoft’s market capitalization to $2,784 billion. The stock market weight of the technology group is now close to the giant Apple, the world’s largest capitalization valued at nearly $3,000 billion. For its part, the title of the apple brand has gained more than 50% over the whole of 2023.
Nvidia the success over 10 years
The other American tech giants are not to be outdone and have posted equally flattering performances over the whole of 2023, having benefited from expectations of a less aggressive monetary policy on the part of the American Federal Reserve. And they did much better than the S&P 500, which despite everything, has nothing to be ashamed of its performance in 2023 with an increase of 24%.
And over 10 years, the performance of these magnificent 7, namely Gafam (Alphabet, Amazon, Meta, Apple and Microsoft) to which we add Nvidia and Tesla is even more impressive, as noted by Charlie Bilello, director of research at Pension Partners in a tweet.
The progression is thus 13,006% over 10 years for Nvidia, 3,709% for AMD or 2,378% for Tesla.
Sabrina Sadgui – ©2024 BFM Bourse
Are you following this action?
Receive all the information on APPLE in real time: