U.S. Tech Giants Tower Over Chinese Stock Market in Market Cap Race

Thanks to the rally in generative AI, the market capitalization of the so-called “Magnificent 7,” representing seven big tech companies in the United States, has surpassed $13 trillion, overtaking China’s stock market capitalization, the world’s second-largest.

The “Magnificent 7” refers to seven tech companies leading the U.S. stock market: Microsoft (MS), Apple, Nvidia, Alphabet (the parent company of Google), Amazon, Meta (the parent company of Facebook), and Tesla.

Fueled by the explosion in artificial intelligence technology, these companies have witnessed a dramatic increase in their market capitalization. Nvidia is on the cusp of hitting a $2 trillion market cap, driving the total market value of these tech giants beyond $13 trillion.

This surpasses China’s world’s second-largest stock market, at $11 trillion.

The total market capitalization of the U.S. stock market is about $49 trillion.

South Korea’s market cap is about $2.18 trillion, which is about six times the size of the South Korean stock market.

Some analysts are concerned that it’s too concentrated in the U.S. stock market.

Jim Reid, Deutsche Bank’s research head, recently warned in a report that “the U.S. stock market is the most concentrated in history” and that it’s “at a level similar to the dot-com bubble in 2000 and the Great Depression in 1929.”

sinopark@news1.kr