The surging AI adoption across the consumer and business sectors has helped the AI market to reach over a quarter of a billion users and $241bn in revenue, almost 80% more than last year, while the market’s largest players added trillions of dollars to their stock values.
Although the global artificial intelligence (AI) industry has witnessed impressive growth in recent years, 2023 has undoubtedly been a breakout year for AI technology, mainly due to the explosive use of generative AI tools.
According to data presented by Stocklytics.com, in one of the best years for the AI industry, the world’s five largest AI companies, Microsoft, Alphabet, NVIDIA, Meta Platforms, and Tesla have added a staggering $3.2trn to their stock values.
NVIDIA is the Absolute Winner with a 232% Stock Value Growth YTD
AI’s technological leaps in 2023 have accelerated its use across industries to never seen highs. The latest annual McKinsey Global Survey on the current state of AI showed that 35% of companies are using AI in their business today, with financial services, healthcare, retail, and manufacturing seeing the highest adoption rates. At the same time, the explosive growth of gen AI tools has drawn millions of users to the market, helping AI to integrate itself into the fabric of everyday life.
This AI renaissance has also helped the largest players in the industry to add trillions of dollars to their stock values. According to CompaniesMarketCap data, the combined market cap of Microsoft, Alphabet, NVIDIA, Meta Platforms, and Tesla, the world’s five largest AI companies, hit a whopping $7.3trn last week, or $3.2trn more than in January. While they all saw double and triple-digit growth rates, NVIDIA was the absolute winner.
The US-based chip maker that became an AI superpower has seen its stock value surge by 232% year-to-date, jumping from $364bn in January to over $1.21trn last week. That means NVIDIA’s stock value has grown more than Meta Platforms, the top performer among the Big Five tech giants.
Meta has seen the second-largest market cap growth among the five largest companies providing AI solutions and services. In January, the stock value of Zuckerberg’s company was close to $320bn. Since then, it has grown by 169% and hit over $860bn. The world’s most valuable car producer and the fifth-largest AI company by market cap, Tesla, has seen the third-largest stock value growth this year. Last week, Tesla’s market cap hit $805.8bn, showing a 107% increase since the beginning of the year.
Microsoft Added Nearly $1T to its Stock Value in 2023
The world’s second-largest tech company behind Apple and the biggest player in the AI space, Microsoft, has also seen its stock price skyrocket this year. The Azure OpenAI Service producer saw a 27% profit increase for the July-September quarter compared to the same time last year, powered by growth in its cloud computing division, where it has centered its investments in artificial intelligence.
The company’s stock value has been growing throughout the year. But after it beat Wall Street expectations and reported income of $22.29bn in Q3, it jumped even further. Statistics show Microsoft added nearly one trillion dollars to its market cap this year, rising from $1.79trn in January to $2.76trn last week. Alphabet, the second-largest AI company in the world, saw its stock value grow by 45% or $520bn in this period, hitting $1.67trn last week.
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