Numerous analysts predict that the first $4 trillion company could emerge in the year 2025, with Nvidia, Apple and Microsoft leading the race, reported Fortune.
According to Fortune, the market cap of Nvidia has surged from $416 billion to $3.43 trillion due to significant investments in artificial intelligence (AI) as the tech companies ramp up spending on data centers and advanced AI models. Similarly, Apple which is currently valued at $3.67 trillion has seen a massive growth driven by its iPhone user base and an expanding services sector that could benefit from AI integration.
At the same time, Microsoft also follows pretty closely with a market cap of $3.16 trillion which is being bolstered by its early investment in OpenAI and strong sales in its Azure cloud platform.
While any of these companies could reach the $4 trillion milestone, significantly, Amazon is being positioned as a potential contender for a $5 trillion valuation by the end of this decade, asserted Fortune. The aggressive spending of Amazon on AI and cloud infrastructure alongside its robust e-commerce and advertising businesses has eventually resulted in record free cash flow.
Several analysts thus believe that as Amazon continues to invest heavily, it could eventually achieve significant growth in free cash flow while potentially reaching a market cap of $5 trillion if trends continue, noted Fortune.
FAQs:
Numerous analysts predict that the first $4 trillion company could emerge in the year 2025, with Nvidia, Apple and Microsoft leading the race.
Significantly, Amazon is being positioned as a potential contender for a $5 trillion valuation by the end of this decade.
Budget with ET
India's aviation sector has wings, but airlines can't fly high
Change the game of trade as Trump returns to US throne
Income tax payers' wishlist: More benefits in new tax regime, higher HRA & more
At the same time, Microsoft also follows pretty closely with a market cap of $3.16 trillion which is being bolstered by its early investment in OpenAI and strong sales in its Azure cloud platform.
While any of these companies could reach the $4 trillion milestone, significantly, Amazon is being positioned as a potential contender for a $5 trillion valuation by the end of this decade, asserted Fortune. The aggressive spending of Amazon on AI and cloud infrastructure alongside its robust e-commerce and advertising businesses has eventually resulted in record free cash flow.
Several analysts thus believe that as Amazon continues to invest heavily, it could eventually achieve significant growth in free cash flow while potentially reaching a market cap of $5 trillion if trends continue, noted Fortune.
FAQs:
Which companies are leading the race of becoming the first $4 trillion company in the year 2025?
Numerous analysts predict that the first $4 trillion company could emerge in the year 2025, with Nvidia, Apple and Microsoft leading the race.
Where is Amazon positioned as a contender in the $5 trillion dollar race?
Significantly, Amazon is being positioned as a potential contender for a $5 trillion valuation by the end of this decade.
Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.