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Tech top seven added value $3.4 trillion

Tech top seven added value: $3.4 trillion

The most successful companies in the IT sector have recently finished a banner year. Apple, Microsoft, Amazon, Alphabet, Facebook, Tesla, and Nvidia, the seven most valuable technology companies in the United States, amassed a combined market cap of $3.4 trillion in the year 2020, despite the fact that the world was in the midst of a pandemic and a broader economic crisis.

Big Tech was not slowed by COVID-19 or the rising number of investigations into its dominance. This is due to the continued optimism over iPhone sales, the growth of Microsoft’s Teams collaboration product, Amazon’s ongoing control of e-commerce, and the strength of Google and Facebook’s duopoly on online advertising.

The spectacular rally put on by Tesla was by far the most surprising event.

The market capitalization of the electric vehicle manufacturer increased from $76 billion at the beginning of the year to $669 billion as of the conclusion of trading on Thursday due to the nearly ninefold increase in the stock price. Tesla was able to recover and set a new record for the number of vehicles it delivered in the third quarter, despite the initial manufacturing shutdown brought on by the pandemic.

After posting five consecutive quarters of profits, Tesla became the company with the largest-ever addition to the S&P 500 index this month. As a result of Tesla’s success, the company joined the index with the fifth-heaviest weighting.

Chipmaker Nvidia, meanwhile, saw its value more than double in 2020, closing the year with a market cap of $323 billion. This places it as the seventh-most valuable technology company and the 16th-most valuable company in the United States overall. The graphics chips that Nvidia designs for use in gaming devices have been selling at such a rapid rate that the business has been having trouble keeping up with demand.

Chips manufactured by Nvidia are also gaining popularity in the data center, which is an environment where increased workloads necessitate quicker speeds. Nvidia reached an agreement in September to acquire mobile chipmaker Arm Holdings from SoftBank for a total price of $40 billion, making it the second-largest deal that an American technology company has announced so far in 2018. However, there is still a chance that Chinese authorities will prevent it.

The most significant increase in market capitalization was seen by Apple, which saw its value increase by nearly one trillion dollars as a result of its stock increasing by 81%. Amazon’s market value increased by $710 billion as a result of the company’s success in expanding its consumer and cloud-computing businesses. A total of $480 billion was acquired by Microsoft, $268 billion was acquired by Alphabet, and $193 billion was acquired by Facebook.

The rise in wealth is reflected quite plainly in the rankings of the wealthiest people. The founder of Amazon, Jeff Bezos, has the most wealth of any individual on the planet, followed by the CEO of Tesla, Elon Musk, and the co-founder of Microsoft, Bill Gates. Mark Zuckerberg, the CEO of Facebook, comes in fifth. Also included in the top 10 are the founders of Google, Larry Page, and Sergey Brin, as well as the former CEO of Microsoft, Steve Ballmer.

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