The 10 largest technology companies in the world

• Post by: Admin
• May 11 2024

Technology companies are among the best long-term performers on the stock market.

The 10 largest technology companies in the world

Technology companies are among the best long-term performers on the stock market.

In recent decades, technology has become increasingly integrated into all areas of the economy. Technology stocks are among the market's long-term best performers, and the S&P 500's total weighting of the technology sector has increased to 29.2% as of April 30. Even mega-cap companies like Alphabet Inc. (ticker: GOOG, GOOGL), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META) and Tesla Inc. (TSLA), which are technically not covered by the Global Industry Classification Standard Those classified as technology companies have businesses that revolve around disruptive technologies, such as artificial intelligence and cloud services.

Microsoft Corp. (MSFT)

Microsoft is the world's largest software company and is known for its Windows operating system, its Azure cloud services, its social media platform LinkedIn, its professional office software suite and its Xbox gaming brand. Microsoft is one of the oldest companies on this list; It was founded in 1975 and went public in 1986. Nearly half a century after its founding, Microsoft's focus on subscription-based software, professional cloud services and AI technology has helped it sustain the revenue growth that long-term investors expect. Microsoft hopes its investments in ChatGPT maker OpenAI will help usher in the next era of growth.

Market cap: $3.1 trillion

Apple Inc. (AAPL)

Apple is not only one of the most valuable technology companies in the world, but also one of the most profitable companies in the world. While Apple's revenue growth has slowed, the company reported a whopping $97 billion in net income in 2023. Its huge profits supported $83.9 billion in annual buybacks. In addition to the stock's strong long-term performance, legendary value investor Warren Buffett believes Apple still has room for improvement. Apple is by far the largest stock holding of Buffett's Berkshire Hathaway Inc. (BRK.B, BRK.A), accounting for about 40% of its total public investment portfolio.

Market cap: $2.8 trillion

Nvidia Corp. (NVDA)

The high-end semiconductor manufacturer Nvidia has been one of the most spectacular growth stories in the entire stock market since the 2008 financial crisis. In March 2009, Nvidia's market capitalization was less than $5 billion. Just 15 years later, Nvidia's historic bull market has pushed the stock's market cap past $2 trillion, and the company continues to post impressive growth numbers thanks to booming demand for AI infrastructure. Not only was Nvidia the best-performing stock on this list in 2024, but it was also the second-best-performing stock in the entire S&P 500 this year.

Market cap: $2.2 trillion

Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)

Taiwan Semiconductor Manufacturing is the world's largest contract chipmaker, producing cutting-edge semiconductor chips developed by Advanced Micro Devices Inc. (AMD), Qualcomm Inc. (QCOM) and other customers. Taiwan Semiconductor was founded in 1987 and has since become the leading global semiconductor manufacturer, generating a total return for investors of 836% over the last decade. In recent years, Taiwan Semi's foundries have become even more important to the technology world as Intel Corp. (INTC) is struggling with its internal manufacturing processes. Taiwan Semiconductor holds an impressive 61% share of the global semiconductor foundry market and its market share continues to grow.

Market capitalization: $770 billion

Broadcom Inc. (AVGO)

Broadcom is a diversified designer, developer and supplier of analog semiconductor devices. Broadcom has been a 20-bagger stock for investors over the last decade, gaining 2,447% including dividends. In addition to its impressive organic revenue growth, Broadcom also recently completed a massive $69 billion acquisition of VMware, which could significantly boost Broadcom's software capabilities. Broadcom is heavily dependent on sales of Apple devices and should continue to benefit from growth in data center connectivity. VMware could also help Broadcom diversify into higher-margin, recurring software sales, providing additional financial transparency.

Market capitalization: $616 billion

ASML Holding NV (ASML)

ASML is headquartered in the Netherlands and is one of the world's largest providers of semiconductor manufacturing equipment. The global semiconductor market could become a $1 trillion industry by 2030, and ASML is the world's only manufacturer of extreme ultraviolet (EUV) lithography machines. Chipmakers are using EUV technology to print ever smaller chip designs. ASML does not design or produce chips itself, only the machines that produce advanced chips for Intel, Taiwan Semiconductor and other chipmakers. CEO Peter Wennink said 2024 will be a “transitional year” for ASML, but growth is likely to accelerate in 2025.

Market capitalization: $367 billion

Oracle Corp. (ORCL)

Oracle is one of the world's largest enterprise software and cloud services providers, specializing in database management software. Oracle is a rare value among mega-cap technology stocks as its shares trade at a forward earnings multiple of just 18.6. Oracle has stable revenue growth, generates consistent profits, has an attractive valuation, and reinvests excess earnings in share repurchases and its 1.3% dividend. Oracle has world-class data center infrastructure and its enterprise resource planning software system helps manufacturers manage their processes, including planning and purchasing materials. AI chip maker Nvidia is one of Oracle's largest cloud computing customers.

Market capitalization: $320 billion

Salesforce Inc. (CRM)

Salesforce is the world's largest provider of cloud-based customer relationship management (CRM) software. While Salesforce's revenue growth has slowed in recent years, its profits and margins have increased. Salesforce was a pioneer of the software-as-a-service model, and the company's aggressive acquisition strategy has allowed it to build the most comprehensive portfolio of CRM products on the market. Salesforce's large customer base provides opportunities for cross-selling and upselling and has a history of high customer retention rates. Automation remains a high-growth market, and investments in AI technology could help Salesforce gain even more market share in the coming years.

Market capitalization: $269 billion

Advanced Micro Devices Inc. (AMD)

Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices have risen an incredible 3,837% over the past decade. The company's management team has a strong track record, including years of market share gains from Intel and other competitors. AMD is positioned to capitalize on some of the largest and fastest-growing segments of the technology sector, including cloud computing, AI and online gaming. While Nvidia is undoubtedly the frontrunner in AI GPUs, the market is so large that AMD could achieve significant profit and revenue growth even without Nvidia's leadership position.

Market capitalization: $246 billion

Adobe Inc. (ADBE)

Adobe provides software applications for creative content production and has successfully evolved from a desktop-based software company to a cloud-focused software provider. Adobe's top products, including Photoshop, Illustrator and Premiere Pro, remain leaders in their respective markets. Digital content creation is a booming industry, and incorporating generative AI capabilities could create tremendous long-term value for Adobe investors. Adobe's generative AI products Sensei and Firefly are already attracting great interest from customers. Additionally, the company's shift to a subscription-based model has improved and stabilized its financial prospects and helped reduce piracy of its products.

Market capitalization: $216 billion