Global Top 100 Companies Reach Record Market Capitalization in 2023
The "record chase" on stock markets was driven by the technology sector, EY said. The market capitalization of the current top 100 tech companies soared by 60 percent within a year. No other sector recorded anywhere near as much growth in value.
"This year, the topic of artificial intelligence in particular has fueled investors' imagination and thus stock market prices," Henrik Ahlers, chairman of the Management Board of EY Germany, said, adding that "companies operating in this area have become favorites of investors."
Nine of the ten most highly valued companies in the world are headquartered in the United States, according to EY. U.S. technology giant Apple remained the most valuable company in the world at the end of 2023, with market capitalization of around three trillion U.S. dollars.
Saudi Arabian oil and gas company Saudi Aramco lost one rank and came in third place after multinational technology corporation Microsoft. Saudi Aramco was the only company in the top 10 of the EY ranking that has its headquarters outside the United States.
The boom in the tech sector cemented the United States' dominance in the world's stock markets, the analysis found. The number of U.S. companies among the 100 most valuable companies climbed to 62, one more than in 2022.
With nine companies listed among the top 100, China once again came in second. The most valuable European company at the end of the year was Danish pharmaceutical group Novo Nordisk at 16th place.
Two German companies made it back to the top 100 after not being represented last year, according to the EY analysis. Software company SAP ranked 61st and technology firm Siemens climbed from 115th to 88th place.
However, the current artificial intelligence (AI) boom would be an opportunity for Europe and Germany to regain lost ground. "Particularly for a location like Germany, AI can bring positive growth impulses in view of the shortage of skilled workers and demographic change," Ahlers said.
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