Since the public release of ChatGPT in late 2022, artificial intelligence (AI) has been a primary driver of significant stock market gains for leading companies.
Research by Finbold reveals that the market capitalization of the 10 largest AI companies has skyrocketed by over $8.7 trillion in less than two years, surging from $7.2 trillion to a current valuation of $16 trillion.
Semiconductor giant Nvidia (NVDA) has been a major beneficiary of this technological advancement, experiencing a $3 trillion surge in valuation and solidifying its position as the world’s second-largest company.
Potential Risks of the AI Boom
This rapid expansion, coupled with an increased focus on big tech, may have unintended consequences. Andreja Stojanovic, a co-author of the research, cautioned, “Last year witnessed a substantial concentration of value within a limited number of American companies, significantly outperforming the broader market. While AI was the dominant narrative of 2024, the tech sector as a whole experienced substantial growth. Finbold research indicates that the 10 largest tech firms collectively grew by $6.6 trillion within a year.”
Apple, Nvidia, and Microsoft together account for a substantial 62% of the total valuation of top AI firms. Furthermore, the combined market capitalization of the 10 largest AI companies represents a significant portion of the overall U.S. stock market, raising concerns about potential systemic risks.