Artificial intelligence is increasingly taking a prominent place in the financial market, particularly within the Nasdaq-100 index. But what is the actual impact of these five AI stocks? Discover how they dominate the market and influence the evolution of the index in this detailed article.
The Power of the 5 Dominant Stocks in the Nasdaq-100
The Nasdaq-100 is a stock market index made up of the 100 largest non-financial companies listed on the Nasdaq. This index is often regarded as an indicator of the performance of the technology sector. Among these companies, five giants in artificial intelligence (AI) exert considerable influence, representing nearly 35.9% of the index.
The AI Champions in the Nasdaq-100
The five companies that dominate the Nasdaq-100 in terms of market capitalization are:
- Microsoft (MSFT): $3.3 trillion.
- Apple (AAPL): $3.2 trillion.
- Nvidia (NVDA): $3 trillion.
- Alphabet (GOOG, GOOGL): $2.2 trillion.
- Amazon (AMZN): $2 trillion.
These companies, undisputed leaders in the AI sector, have managed to transform their technological dominance into exceptional stock performance, significantly contributing to the rise of the Nasdaq-100.
The Technological Supremacy of Microsoft
Microsoft, the largest company in the world, owes a large part of its current success to its strategic investments in AI. By investing $10 billion in OpenAI, creator of ChatGPT, Microsoft developed Copilot, a virtual assistant integrated into Windows, Edge, Bing, and the 365 suite, thereby increasing productivity for businesses and consumers.
Apple: An AI Giant for Consumers
Apple continues to dominate the smart device market with over 2.2 billion active devices. Its recent innovation, Apple Intelligence, in partnership with OpenAI, transforms features like Siri and is expected to launch with the iOS 18 operating system. This evolution could spark a new wave of device updates, further solidifying Apple’s position as a leader in consumer AI.
Nvidia: A Pillar of AI for Data Centers
Nvidia has seen its market capitalization rise from $360 billion to $3 trillion due to the growing demand for its graphics processing units (GPUs). These, particularly the H100, are the best in the world for training and inference of AI models. Nvidia continues its ascent with the next generation of chips based on Blackwell architecture.
Alphabet: Master of Data and AI
Alphabet, through Google, possesses an unmatched amount of data to develop AI models. Its Gemini model, designed to compete with GPT-4, and the integration of generative AI into Google Search demonstrate the company’s advancement in this field, thus raising its stock value to historic highs.
Amazon: Versatility and AI Advances
Amazon employs AI for its recommendation engine, a suite of tools for sellers, and its cloud services AWS. By developing its own AI chips and investing in innovative startups like Anthropic, Amazon strengthens its dominant position in the AI market.
These five technology giants do not just dominate the Nasdaq-100; they also define the future of AI, consolidating their influence in the global stock market.
