US Tech Titans Surpass Most Countries' Entire Stock Markets in Market Cap, Deutsche Bank

A recent research note from Deutsche Bank reveals that the combined market capitalization of America's seven largest tech companies, known as the "Magnificent 7," surpasses the market cap of companies in almost every other major global economy. The tech giants—Apple, Meta, Amazon, Alphabet, Tesla, Microsoft, and Nvidia—dominate in market cap and soar in profits, outstripping publicly traded firms in nearly every G20 country.

The only exceptions are China and Japan, where larger profits are observed in their listed companies.
Deutsche Bank's analysts highlight that the combined market capitalization of these tech behemoths alone would position them as the second-largest country stock exchange globally. Microsoft and Apple, individually, boast market capitalizations that nearly match the combined value of listed companies in major economies such as France, Saudi Arabia, and the UK.

The valuations of 36 businesses that have consistently placed among the top five of the S&P 500 since the 1960s were the focus of a study by Deutsche Bank. Despite variations in stock performance among the top earners in recent months, with Tesla experiencing a 20% drop in share price since the start of 2024 while Nvidia's surged by almost 47%, the core group remains the largest and most successful company not only in the US but globally, according to Jim Reid, Deutsche Bank's head of global economics and thematic research.

The concentration of stock market returns on the S&P 500 in the past year was notably centred around the Magnificent 7, while other stocks in the index faced challenges. However, Deutsche Bank issued a cautionary note, highlighting that investors, if persistently favouring tech stocks, may miss out on other potentially lucrative investment opportunities. As the tech giants continue to wield significant influence, the financial landscape remains dynamic, urging investors to consider diversification for a well-rounded and resilient investment portfolio carefully.