Artificial intelligence (AI) is emerging as the epicenter of the global technological landscape, showcasing a formidable fusion of cutting-edge innovation and boundless potential. Numerous technology companies are already leaping onto the AI space, a trend partly driven by increased investor confidence, as reflected in the notable shifts in market capitalization.
In this line, data acquired and calculated by Finbold indicate that the leading 12 AI companies collectively experienced an inflow of $2.86 trillion in market capitalization between January and November 2023. As of November 9, the total market cap for these companies stood at $7.28 trillion, compared to $4.41 trillion in January, a 65% growth.
A breakdown of the companies shows that chipmaker Nvidia recorded the highest growth rate, with an increase of 215.77% from $364.18 billion to $1.15 trillion. C3.ai has the second-highest growth of 152.82%, from $1.23 billion to $3.11 billion. Splunk ranks third with a current market cap of $24.72 billion, representing gains of 75.44%.
Amazon is fourth, with a growth of 71.31% from $856.94 billion to $1.46 trillion. Synopsys has recorded gains of 58.15%, from $48.67 billion to $76.97 billion. Microsoft’s market cap grew from $1.79 trillion to $2.69 trillion, representing a growth of 50.78%. Alphabet now has a market cap of $1.64 trillion, a growth of 43.22% from January’s $1.15 trillion. UiPath recorded a growth of 33.14% from $7.03 billion to $9.36 billion.
Other notable companies with significant growth include Dynatrace (31.76%), Snowflake (13.26%), and IBM (7.13%).
AI companies defy challenging environment
The research pointed out the conditions where the selected companies have recorded significant inflow into their market capitalization. According to the research report:
“These companies have recorded significant growth in capitalization in a year that has been considered challenging for the tech industry. They have had to overcome a slew of global obstacles, including the ongoing pandemic recovery, intermittent supply chain challenges, fluctuating interest rates, and economic complications linked to geopolitical situations. Despite the growth in capitalization, they are also working to find their place in the rapidly advancing pace of technology, particularly within the artificial intelligence realm.”
Although the growth in market cap is significant, there is room for a cautious approach.
This cautious optimism is based on the conviction that we are still in the initial phase of AI technology that’s yet to be fully explored.