Ever since the global economy became more interconnected and interlinked across continents and industries, a large number of companies have witnessed a surge in their growth parameters along with business expansion and profits.
Companies across sectors like healthcare, retail, real estate, technology, banking, etc, have grown exponentially. However, with this swing of growth, the competition has equally become difficult and tricky. There are several multinational organizations which are aggressively trying to outshine their counterparts in a bid to secure the tag of the world’s largest company by market cap.
Recently, AI chipmaker Nvidia became the world’s most valuable company after it dethroned tech heavyweight Microsoft from the top spot on June 19, 2024. The company’s shares jumped 3.5 percent to $135.58 as its market capitalization increased to $3.335 trillion.
What is market capitalization?
Market capitalization is a key indicator for investors and market lovers, which enables them to assess a company’s value. It exhibits the overall worth of a company’s outstanding shares by multiplying the current stock price by the total number of shares in circulation.
Read: The world’s largest banks by market cap
The most valuable corporations in the business sector are often considered to be those with the largest market capitalization. Notable players from Saudi Arabia are included in the list, even though most of these elite companies have their headquarters in the US.
At present, there are only few companies with a market capitalization of more than $3 trillion listed on the Nasdaq stock exchange.
Most valuable companies by market cap
Nvidia ($3.33 trillion market cap)
Nvidia has cemented its leadership in the semiconductor business with modern graphics processing units (GPUs), which are essential in a number of industries outside of gaming. The demand for Nvidia’s technology has increased due to the rise in AI applications and cryptocurrency mining, solidifying the company’s position as a major player in the IT sector. Nvidia’s GPUs are integrated into famous video games like Call of Duty and Fortnite, and are utilized by some of the biggest firms in the world, like Microsoft, Amazon and Google.
Microsoft ($2.96 trillion market cap)
Microsoft is a global leader in the software business and one of the most successful technological corporations in the world. With an estimated valuation of $2.96 trillion, the corporation is most recognized for its Windows operating system and Office productivity suite. Its broad range of products, which includes hardware, software and cloud computing, helps it to have a strong market position. Azure, its cloud platform, has experienced exponential growth and is a strong competitor of Amazon Web Services (AWS). Microsoft’s market worth has increased as a result of its purchases of GitHub and LinkedIn as well as its forays into AI and quantum computing.
Apple ($3.03 trillion market cap)
With a market capitalization of more than $3.03 trillion, Apple is one of the most valuable companies in the world. Apple has cemented its position with the introduction of augmented reality (AR) and its rising involvement in health technology. The company is recognized for its creative designs, premium goods like the iPhone and Mac, and its ability to be powered by an expanding network of services. Apple is a leader in the technology industry despite difficulties to the global economy thanks to its strong brand loyalty and steady revenue growth from its services section.
Alphabet (Google) ($2.177 trillion market cap)
Google, the most used search engine worldwide, is owned by Alphabet. Search, the Android mobile operating system, the Chrome browser, Gmail email services, Google Drive online file storage, Google Maps, Google Photos, the Google Play app store, and YouTube are just a few of the technologies and digital services that the firm provides.
The company also offers a range of workplace collaboration tools and cloud services via Google Cloud. The tech giant also makes money from an expanding line of physical goods, which includes Fitbit, Google Nest smart home gadgets, and Pixel phones. Additionally, Alphabet has its Other Bets division, which comprises up-and-coming companies like Waymo, a manufacturer of self-driving cars.
Amazon ($1.88 trillion market cap)
An international technology company, Amazon’s e-commerce empire is supported by its solid foundation in cloud computing (AWS), as well as a variety of revenue streams that include subscription services, entertainment and advertising, and growing physical retail presence. These factors combine to make Amazon one of the wealthiest companies in the world, with a market valuation of $1.886 trillion. Aside from its cloud computing service and rapidly expanding streaming entertainment business, Amazon provides a range of web services and subscription services. In addition, the firm produces and markets electronic products, including Fire tablets, Fire TV, Kindle e-readers, Echo and Alexa. Groceries are sold by Amazon through its subsidiary Whole Foods.
Saudi Aramco ($1.82 trillion market cap)
The Saudi oil behemoth, Saudi Aramco, continues to be a mainstay of the world energy market. The corporation maintains its supremacy despite the increased focus on renewable energy because of its large oil reserves and wise investments in petrochemicals. With a market capitalization of $1.820 trillion, it is one of the most lucrative companies in the world due to the substantial income from oil exports, which are aided by typically high but changing oil prices. Saudi Aramco, the main engine of Saudi Arabia’s economy, is positioned among the world’s top markets because of its abundant oil reserves and advantageous Middle Eastern location.
Meta ($1.25 trillion market cap)
The internet company Meta Platforms, formerly known as Facebook, has a market capitalization of more than $1.255 trillion. The company is well-known for its social media platforms, which have become essential components of contemporary digital life, and include Facebook, Instagram and WhatsApp. With its large user base and global reach, Meta Platforms primarily makes significant money from online advertising, which it uses to provide businesses all over the world with focused and efficient marketing solutions.
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