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Mega-cap companies saw strong gains in 2023 amid tech optimism

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4 months ago

January 2, 2024

By Reuters | Updated: 2 January, 2024

Jan 2 (Reuters) – Global mega-cap companies, led by the technology sector, posted solid gains in 2023, boosted by optimism over artificial intelligence, that inflation was peaking and on hopes for further economic stimulus from central banks.

Facebook parent Meta Platforms (META.O) experienced a substantial increase in market capitalization, soaring 188% to $909.3 billion, its largest annual gain in 11 years. Nvidia Corp (NVDA.O), the U.S. chipmaker, skyrocketed 240% in terms of market cap, to $1.22 trillion – its biggest yearly gain since 2001.

Electric vehicle giant Tesla (TSLA.O) also saw significant growth, with its market value doubling to $789 billion by the end of December. This increase was propelled by enthusiasm over its self-driving software and a record number of vehicle deliveries in the final quarter of the year.

Tech leaders Apple (AAPL.O) and Microsoft (MSFT.O) maintained their positions at the top, with market capitalizations of $2.99 trillion and $2.79 trillion, respectively, leading the pack in terms of overall value.

However, the substantial gains among these mega-cap stocks have led some analysts to deem them overvalued, with expectations for a more widespread rally in the coming year. This broader market uplift is anticipated to be supported by potential rate cuts from global central banks this year, analysts said.