In this article, we are going to talk about the 15 most valuable technology companies in the world. You can skip our detailed discussion about the technology industry and go to the 5 Most Valuable Technology Companies in the World.
The prescient words of legendary venture capitalist Marc Andreessen come to mind when one sees the dramatic growth of the tech industry. In a 2011 essay, Andreessen had famously said: software is eating the world. Indeed it is. As the coronavirus continues to batter the global economy, tech companies continue to thrive amid higher margins, low costs, increasing growth and expanding user base. Products and services of tech companies are used by almost everyone as the world moves to the internet, apps, gaming, entertainment and Cloud.
According to a report released by Oxford Economics and Huawei, the global digital economy was worth $11.5 trillion in 2016, accounting for 15.5% of global GDP. This value doesn't include the global computer hardware market yet which was worth $897 billion in 2020. Looking at these figures, we can see that the value of the tech industry is about to skyrocket irrespective of the fracas between growth and value stocks.
Growth Catalysts for Tech Companies
U.S. markets are pointing higher on Thursday as the yield on 10-year Treasury notes declined to 1.715% from 1.749% Wednesday. President Biden’s ambitious $2.3 trillion infrastructure plan to build roads, bridges expand telecom and internet infrastructure is also adding to the optimism. Analysts believe that tech stocks are set to recover. Hans Peterson, global head of asset allocation at SEB Investment Management, said in an interview with the WSJ that the bond market has “adjusted” and he is seeing more opportunity for growth stocks now.
How Big Is The Technology Industry
The top five technology firms currently have a market cap of approximately $7 trillion. The tech firms saw the fastest growth in the industry during the pandemic as the world shifted to digitalization. Artificial intelligence is only one of the many innovative new technologies that are currently being developed. On top of that, the demand for semiconductors, graphic processors, and other supercomputer parts continue to rise. Over the next few decades, technological advances in genetic testing and individualized medicine, fintech, 3D printing, energy storage, and robotics will change our lives. We are in the early stages of a massive technological change.
Cathie Wood's ARK Invest is one of the hedge funds that are bullish on technology, including AI, automation, energy storage, DNA sequencing, and blockchain technology. Ms. Wood is one of the biggest shareholders of Tesla Inc. (NASDAQ: TSLA) and believes the EV stock would rise to $3,000 in 2025.
Is It The Best Time to Buy Tech Stocks?
With the tech stocks crashing due to the rapid rise of the 10-year Treasury yields and growth investors leaning toward the discounted battered sectors of the market, people are asking: "Should we buy the dip?" Despite the confusion, tech behemoths and big e-commerce firms will continue to thrive. It would be naïve to disregard secular growth developments like 5G networks, artificial intelligence, robotics, semiconductors, and the cloud over the long term, so investors should still allocate a portion of their portfolios to tech stocks.
Most Valuable Technology Companies in the World
Now let's see the most valuable technology companies in the world starting from number 15. We sorted the most valuable technology companies based on their market caps.
Market Cap: $205 billion
We start our list of the 15 most valuable technology companies in the world with Oracle Corp. Headquartered in California, the company provides technological solutions in all aspects of information technology to help businesses optimize their corporate process. Oracle is running after the biggest cloud services players such as AWS and Microsoft Azure as the company expands its cloud portfolio with Oracle Roving Edge Infrastructure, a technological innovation that provides scalable and secure cloud services even in the most remote areas of the world. The company’s cloud services and license support revenues totaled $7.3 billion, up 5% in the third quarter of 2021.
The company’s revenue in fiscal third quarter of 2021 came in at $10.1 billion. Shares of ORCL jumped 44.8% over the past twelve months.
Market Cap: $218.6 billion
IT and networking company Cisco ranks 14th in our list of the 15 most valuable technology companies in the world. Headquartered in California, Cisco's technology focuses on the manufacturing of IP-based networking products which include routers, access points, and web security among the few. Cisco is also known as one of the most valuable cloud computing companies in the world.
Cisco Plus, a Network-as-a-Service platform where clients can pay a flat monthly or quarterly charge to use the company's hardware and software, was recently introduced by the cloud computing conglomerate. The company's revenue in fiscal second quarter of 2021 came in at $12 billion. Shares of CSCO increased 35% over the past twelve months.
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Market Cap: $223 billion
Ranking 13th in our list of the 15 most valuable technology companies in the world is Adobe Inc. California-based Adobe Inc. has been in the industry since 1982 offering design and media solutions. The company focuses on developing its creative cloud services that include Photoshop, Premiere Pro, Acrobat, and Illustrator.
Adobe's revenue in the first quarter of 2021 was up 26% to $3.91 billion. Shares of ADBE surged 57% over the past twelve months.
Copyright: photogearch / 123RF Stock Photo
Market Cap: $250.8 billion
Ranking 12th on the list of the most valuable technology companies in the world is ASML Holding. Based in the Netherlands, the company produces lithography machines used by some of the largest chipmakers in the world such as Intel and TSMC. ASML and Heriot-Watt University recently announced a five-year research and development collaboration to create new broadband sources for metrology applications.
The company's net sales in 2020 were $16.4 billion. Shares of ASML surged 144% over the past twelve months. Cowen and Company, LLC analysts gave ASML an Outperform rating on March 22, 2021.
Market Cap: $259 billion
California-based chipmaker Intel ranks 11th on the list of the 15 most valuable technology companies in the world. Intel is widely known for its powerful chipsets and computer products. According to Statista, the technology company has been a major player in the global semiconductor industry for the past ten years, with a market share of about 15%.
Intel's revenue in 2020 grew 8% to $77.9 billion. The stock has gained 23% in the last twelve months.
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Market Cap: $321 billion
California-based NVIDIA is one of the most valuable technology companies in the world. The tech has gained more popularity as the demand for heavy-duty GPUs increased because of its dominance in the gaming and cryptocurrency mining industries. To expand its computing technology, NVIDIA announced last year that it will be acquiring UK-based AI solutions company ARM Holdings for $40 billion.
Revenue for fiscal 2021 hit a new high of $16.68 billion, up 53% from $10.92 billion the previous year. Shares of NVDA soared 117.8% over the past twelve months.
Market Cap: $547.6 billion
Ranking 9th in our list of the most valuable technology companies in the world is TSMC. The company is the third biggest semiconductor manufacturer in the world supplying about 28% of the global semiconductor market.
The company's revenue in the fourth quarter of 2020 was $12.7 billion. Shares of TSM jumped 152% over the past twelve months.
Market Cap: $597 billion
Ranking 8th in our list of the 15 most valuable tech companies in the world is Alibaba Group Holding Limited. Aside from the e-commerce business of the Chinese tech giant, Alibaba is also taking advantage of the cloud computing services' growing demand. Alibaba Cloud provides storage, large-scale computing, big data analytics, security management, and machine learning platform.
Alibaba's overall revenue for the fiscal year ended March 31, 2020, was $78.3 billion. Shares of BABA increased 22.7% over the past twelve months.
Christopher Penler / Shutterstock.com
Market Cap: $610 billion
Tesla is one of the most valuable technology companies in the world. It stands out in the industry with its autopilot self-driving car technology. The leading EV company is one of the fastest-growing brands worldwide reaching almost 500,000 deliveries of units in 2020. According to a Morgan Stanley report, the company's market share fell to 69% in February 2021 as Ford (NYSE: F) arrives on the scene with the new all-electric Ford Mustang Mach-E.
In 2020, Tesla's overall revenue came in at $31.5 billion. The stock has gained 584% in the last twelve months.
Copyright: wolandmaster / 123RF Stock Photo
6. Tencent Holdings Ltd (OTCMKTS: TCECHY)
Market Cap: $756 billion
Chinese tech company Tencent Holdings Ltd ranks as one of the most valuable technology companies in the world. Based in Shenzhen, China, Tencent operates e-commerce business and offers internet-related products and services such as artificial intelligence. In addition to its influence in the e-commerce industry, the company also engages in providing fintech and cloud services. Tencent is also one of the biggest mobile game producers in the world.
In the third quarter of 2020, the company's revenue was $18.4 billion, up 29% year-over-year. The stock has gained 65% over the past twelve months.
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Disclosure: None. 15 Most Valuable Technology Companies in the World is originally published at Insider Monkey.