A report from venture capital firm Accel has found that U.S. technology giants such as Nvidia (NVDA), Alphabet (GOOGL) and Microsoft (MSFT) have seen $2.4 trillion U.S. added to their market capitalizations this year due to hype surrounding generative artificial intelligence (A.I.).
Accel’s analysis has found that the share prices of the biggest U.S. technology firms, which also include Apple (AAPL), Amazon (AMZN) and Meta Platforms (META), have risen an average of 36% so far in 2023, with much of the gains attributable to A.I.
Nvidia achieved a trillion-dollar market capitalization for the first time earlier this year, while Apple’s market capitalization soared past $3 trillion U.S. in the spring, making it the most widely held and valuable publicly traded company in the world.
Accel’s report also found that cloud computing and software-as-a-service (SaaS) companies such as Salesforce (CRM) and Palantir (PLTR) are also benefitting from expectations around A.I. and have seen their stocks increase an average of 29% so far this year.
In all, the technology-laden Nasdaq stock index has returned to 80% of its all-time high following the intense selloff in technology stocks during 2022 in what came to be known as the “tech wreck.”
According to Accel, the Nasdaq has recovered faster than it did after the dotcom bubble burst in 2000. It took the Nasdaq index 14 years to test new all-time highs after the tech sector crashed at the turn of the millennium, said Accel.
