Despite a late-year stock market downturn, 2024 was a record-breaking year for U.S. equities, especially in the technology sector. According to Finbold, using data from CompaniesMarketCap, the ten largest U.S. tech companies collectively added $6.6 trillion to their market capitalization—a remarkable 51.31% increase compared to 2023.
Apple took center stage as the world’s most valuable company, reaching a market cap of $3.8 trillion. Meanwhile, Nvidia experienced the most dramatic growth, with its valuation surging by more than $2 trillion in 2024—a staggering 175.3% year-over-year (YoY) increase.
U.S. Tech Sector Surges
Broadcom also saw impressive gains, rising from $461 billion in 2023 to $1.1 trillion by the end of 2024. Alphabet overcame challenges such as declining search engine quality and Department of Justice interventions, growing its valuation by $592 billion, or 33.71%, to $2.3 trillion.
Meta Platforms and Tesla Motors returned to the $1 trillion club, with YoY growth of 64.02% and 69.52%, respectively. Even smaller firms like Oracle and Salesforce delivered strong performances, with Oracle’s market cap rising 61.08% to $467 billion and Salesforce growing 26.14% to $321 billion.
AI as a Key Growth Driver
The artificial intelligence (AI) boom was a major catalyst behind this unprecedented growth. Nvidia, supplying microchips pivotal for AI developments, became the sector’s standout performer. Microsoft, credited with jumpstarting the AI trend through its investments in OpenAI, grew more modestly, adding $364 billion (13.03%) to its valuation.
Finbold previously noted that between late 2022 and mid-2024, the top 10 AI companies collectively gained over $5.4 trillion in market cap. As the AI boom continues, tech giants capitalizing on this trend are expected to grow even further.
Bubble Concerns Loom
However, the meteoric rise of big tech stocks has raised concerns among analysts and investors, drawing comparisons to past market bubbles, including the Dot-com era. Critics argue that the increasing disparity between large-cap tech firms and the broader market could lead to instability.
The Federal Open Market Committee’s (FOMC) latest inflation forecast triggered a sharp $1.5 trillion market correction in a single day, underscoring the fragility of the current environment.
Outlook for 2025
While some analysts caution that a bubble may be forming, optimism remains high for 2025. Industry leaders like Nvidia are projected to reach valuations of $4 trillion or more. Whether the tech rally continues or a market correction looms remains to be seen.
Source: Finbold
