Ever since the original public release of ChatGPT in late 2022, artificial intelligence (AI) has been a key driver of massive stock market gains for any industrious company.
Finbold research shows that the 10 biggest companies involved with AI have seen their market capitalization explode by more than $8.7 trillion in just under 26 months, from a total of $7.2 trillion to their current time valuation of $16 trillion.
The semiconductor giant Nvidia (NVDA), has been a major winner of the technological development as it saw its valuation rise by $3 trillion becoming the world’s second-biggest company. The rapid expansion and an even larger focus on big tech, however, might have also generated some substantial systemic risks.
Andreja Stojanovic, a co-author of the research, said in a statement: “Last year saw substantial value concentration within just a handful of American companies that outperformed the broader market. Although AI was the primary buzzword of 2024, the tech sector as a whole grew significantly.”
Apple, Nvidia, and Microsoft alone account for 62% of the total valuation of top AI firms, while the 10 biggest AI companies together represent a substantial portion of the total US stock market.
“For all of its successes, the AI boom has not been equitable, absolute, or even, arguably, rational,” Finbold wrote.