Tech’s seven largest corporations grew in worth by $ 3.four trillion in 2020
Elon Musk, founder of SpaceX and CEO of Tesla Inc., is coming to the Axel Springer award ceremony in Berlin on December 1, 2020.
Johannessen-Koppitz | Bloomberg | Getty Images
The biggest tech companies have just had a huge year.
The seven most valuable U.S. tech companies – Apple, Microsoft, Amazon, Alphabet, Facebook, Tesla, and Nvidia – reached a total of $ 3.4 trillion in market cap in 2020, weathering a global pandemic and wider economic crisis.
Big Tech has not been slowed down by Covid-19 or the increasing number of investigations into its dominance.
Tesla’s wild rally was the biggest surprise.
The stock rose nearly nine times that year, increasing the electric car maker’s market cap from $ 76 billion at the start of the year to $ 669 billion at the close of trading on Thursday. Despite initial plant closings due to the pandemic, Tesla recovered and delivered a record number of vehicles in the third quarter.
Tesla led tech stocks in 2020
That month, Tesla became the largest addition to the S&P 500, entering the index with the fifth-largest weighting after five profitable quarters in a row.
Chip maker Nvidia more than doubled its value in 2020, closing with a market cap of $ 323 billion. This makes it the seventh largest technology company and number 16 in the United States. Nvidia’s gaming device graphics processors have blown off the shelves so quickly that the company is struggling to keep up with demand.
Nvidia’s chips are also gaining traction in the data center, where improved workloads require faster speeds. In September, Nvidia agreed to buy Arm Holdings, a mobile chip maker from SoftBank for $ 40 billion. This is the second-largest deal announced by a US tech company this year. However, Chinese regulators could still block this.
By far the largest increase in market cap went to Apple, which rose nearly $ 1 trillion in value thanks to its 81% gain in value. Amazon, which benefited from the growth of its consumer and cloud computing businesses, rose $ 710 billion. Microsoft won $ 480 billion, Alphabet won $ 268 billion, and Facebook won $ 193 billion.
The profits are clearly reflected in the ranks of the richest people. Jeff Bezos of Amazon is the richest person in the world, followed by Elon Musk of Tesla and Bill Gates, co-founder of Microsoft. Facebook boss Mark Zuckerberg is fifth. Also in the top 10 are the Google founders Larry Page and Sergey Brin as well as the ex-CEO of Microsoft, Steve Ballmer.
CLOCK: Big Tech has done well with or without economic impetus