Global megacap 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 experienced a substantial increase in market capitalisation, soaring 188% to US$909.3-billion, its largest annual gain in 11 years. Nvidia, the US chip maker, skyrocketed 240% in terms of market cap, to $1.22-trillion – its biggest yearly gain since 2001.
Electric vehicle giant Tesla 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 and Microsoft maintained their positions at the top, with market capitalisations of $2.99-trillion and $2.79-trillion, respectively, leading the pack in terms of overall value.
Read: Apple’s $1-trillion rally will be tough to beat in 2024
However, the substantial gains among these megacap 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. — Patturaja Murugaboopathy and Gaurav Dogra, (c) 2024 Reuters