It took Warren Buffett nearly 60 years to build Berkshire Hathaway into a $1 trillion conglomerate. Eight AI companies have together gained quadruple that in market value in just over nine months. Whether you think AI stocks will keep booming or burst like the dot-com bubble, the growth of these companies has been unprecedented. Their year-to-date gains alone dwarf the total value of some of America's biggest and best-known companies.
One recent prompting session yielded this: As much as 28% of the benchmark MSCI World Index is now IT companies. "That's huge. Number two is banking and financial services, 10 percentage points lower," the CFO said. He also likes to ask Perplexity which companies have the largest 10 market caps in the world. "Nine of them are tech companies and Broadcom recently threw out Berkshire Hathaway," Asam said. "In 1980, it was just IBM. So software does eat the world."
Amazon's current market cap is $2.4 billion, compared to Apple's $3.4 trillion. That sounds like a massive difference, but it's worth noting that Amazon has consistently grown its revenue faster than its peers over the past three years, despite having higher sales numbers. The e-commerce specialist should maintain that momentum for several reasons. First, it remains a leader in the cloud computing market.
The United States has become a global powerhouse for billion-dollar companies, helping its stock market to far outvalue the world's leading economies due to its deep capital markets and regulatory support.
In the previous five years, we've doubled our revenue, we grew profits 10 times, and we grew our market cap three times. So there is a path to it, obviously, but it's all incredibly dependent on executing well.