Interest in artificial intelligence increases the value of technology companies and brands. The best ones include Nvidia, Microsoft, Google or Amazon.
The American chip manufacturer Nvidia has become the first company in the world whose market value has reached five trillion USD, which is equivalent to 104.5 trillion crowns. However, others also did well. The value of the Apple brand has recently climbed to four trillion dollars, or almost 84 trillion crowns. The company thus became the third publicly traded company in the world to break this barrier. Microsoft remains in the ranking between the two companies.
Nvidia Corporation leads the global market in artificial intelligence chips, significantly benefiting from the sharp growth in interest in this technology. Since the launch of ChatGPT in 2022, the company's shares have increased twelvefold! And this number is expected to grow. The company's CEO Jensen Huang has already announced a chip order worth 500 billion US dollars. Nvidia also announced a partnership with Uber in the field of robotic taxis and an investment of one billion dollars in Nokia. These companies plan to cooperate on 6G technology. Nvidia also collaborates with the US government on the creation of seven new artificial intelligence supercomputers.
However, there are already fears in the market of a possible bubble in the AI sector. At the beginning of last month, representatives of the Bank of England warned of the growing risk that prices of technology stocks, which are rising due to interest in artificial intelligence, could plummet. The head of the International Monetary Fund expressed similar concerns.
Technology companies are "trendy"
What is undeniable, however, is the fact that the technology sector is among the most promising and profitable worldwide. Since the co-founder of Apple, Steve Jobs, introduced the first iPhone eighteen years ago, it has come a long way. Thanks to the success of the iPhone, Apple has gradually become the first publicly traded company in the world, its value now exceeding four trillion dollars.
And Apple has just reached another milestone in recent days. The market value of this American company has exceeded four trillion dollars. It is thus the third publicly traded company in the world to have overcome the mentioned limit. Nvidia overcame this limit for the first time in July this year and shortly afterwards it was followed by the American software giant Microsoft.
Not only artificial intelligence, but also smart phones and cloud solutions
Apple is now primarily benefiting from strong demand for the new range of iPhone smartphones, which it introduced on September 9. The company's shares have strengthened by about 13 percent since then. This offsets concerns about Apple's slow progress in artificial intelligence.
"iPhone phones account for more than half of Apple's profits and revenues,"
quoted analyst Chris Zaccarelli from Northlight Asset Management Czech News Agency.
Microsoft also successfully defends its position, even being ahead of Apple in second place. It benefits not only from the development of artificial intelligence but also cloud services. Sales in the fourth fiscal quarter, which ended on June 30, exceeded analysts' expectations. Year-on-year, they increased by 18 percent to 76.44 billion dollars. This implies a value of around 1.6 trillion CZK.
"Microsoft ended the fourth quarter of fiscal year 2025 with a strong result, confirming its position as one of the main drivers of the technology sector,"
Port analyst Marek Pokorný said this for ČTK.
Who else is in the Magnificent Seven?
The company Alphabet, which owns the Google search engine, has also exceeded the three trillion dollar mark this year, which is more than 62 trillion crowns. Since the beginning of this year, its shares have increased by about a third. This represents, by the way, the best performance of the group of the seven largest technology companies, which in recent years have been driving the growth of the US S&P 500 stock index and the entire market. This group is rightly referred to as the Magnificent 7.
The rise in share value was mainly supported by an antitrust decision that avoided the harshest sanctions demanded by regulators, including the threat that Alphabet would have to sell the Chrome browser. It also came after favorable results for the second quarter, which showed that the company's revenues are increasing demand for artificial intelligence products.
Amazon is also well positioned, who will start providing cloud services to the OpenAI start-up. Amazon Web Services' cloud division has entered into a multi-year contract with OpenAI for 38 billion dollars, or more than 800 billion. The service will provide the owner of the AI ChatGPT chatbot access to hundreds of thousands of Nvidia graphics processes. These will be able to be used for training and operating their AI models. Amazon's shares in response to the report showed about a five percent increase at the beginning of November before the start of official trading on the Nasdaq market in New York.
The growing interest in the field of artificial intelligence is primarily driven by the effort to develop technology capable of matching or even surpassing human intelligence. Of course, this is then reflected in the increasing value of the best technology companies and brands in this field and thus the rising prices of their stocks.
Sources: author's text, ČTK
