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U.S. tech giants added $2.4 trillion to their market capitalizations in a year defined by the hype around generative artificial intelligence, according to a new report from venture capital firm Accel.
Accel, in its annual Euroscape report, said the share price values of big technology firms such as Apple, Microsoft, Alphabet, Amazon and Nvidia rose by an average of 36% year over year.
Nvidia joined the trillion-dollar club for the first time, with the U.S. chip giant now worth over $1 trillion. Nvidia’s high-performance chips power many advanced generative AI models, which produce new content from huge volumes of training data.
The world’s biggest technology companies added $2.4 trillion to their market capitalizations in 2023, according to Accel data.
Accel
Accel’s Euroscape index, which includes massive cloud and software-as-a-service (SaaS) names such as Salesforce, Palantir and Unity, rose 29% in the year to date.
The Euroscape index, which tracks several publicly-listed cloud stocks, is up 29% year-to-date, according to Accel.
Accel
Last year, the picture for cloud and SaaS was grim. Companies saw $1.6 trillion wiped off their value as investors rotated out of high-growth tech stocks, according to Accel. Now, there are signs the pressure is easing.
Faster recovery than after dotcom bust
The tech-heavy Nasdaq Composite returned to 80% of its all-time high within 18 months, according to Accel, marking a faster bounce back than than after the dotcom bust in the 1990s.
The Nasdaq recovered 80% of its all-time high within 18 months.
Accel
It took the Nasdaq around 14 years to reach that milestone, Accel said.
It took the Nasdaq Composite 14 years to recover 80% of its 2000 peak.
Accel
Public multiples for Euroscape companies are also back to a 10-year pre-Covid average of 6.1-times next-twelve-months revenue. Funding for cloud and SaaS companies in Europe, Israel and the U.S. has also reverted to pre-Covid levels.