According to data compiled by Bloomberg, the combined market value of three American tech giants, Microsoft, Apple, and Nvidia, is about $9.2 trillion, surpassing the market value of the mainland Chinese stock market (excluding Hong Kong) of $9 trillion.
On June 5th, Nvidia’s total market value exceeded $3 trillion, surpassing Apple and ranking second in the world only behind Microsoft. Nvidia became the third company in history to surpass the $3 trillion mark in total market value and the first computer chip company to reach this level.
In May 2023, Nvidia’s total market value first surpassed $1 trillion among semiconductor companies, and in February 2024, it crossed the $2 trillion mark, showing astonishing growth. According to a report by Nikkei News, research firm Omdia introduced that in 2023, Nvidia held about 80% market share in the AI chip sector used in data centers.
Apple’s performance this year has not been strong, mainly due to a cooling demand for iPhones in the Chinese market and pressure from a $2 billion fine from the European Union. However, Bloomberg reported that iPhone rebounded in China with a 52% increase in shipments. The company’s stock price has risen nearly 13% since May, potentially achieving the largest monthly gain since July 2022.
Bloomberg reported that J Bell Investment Director Russ Mould stated, “Investors seeking momentum and growth will trust Microsoft, Apple, and Nvidia due to their strong competitive positions, high profit margins, and robust balance sheets.”
Mould remarked, “The danger here lies in mistaking reliability for security; similarly, if expectations are high but unexpected events occur, it could lead to a drop in stock prices.”
On the other hand, the Chinese economy continues to be weak, and the Chinese stock market is no longer a market where international funds rush to invest. Over the past three years, Chinese stock prices have fallen by over half, and business profits remain weak. The sluggish real estate market continues to drag down domestic demand, while falling producer prices are squeezing manufacturers’ profit margins.
According to data from Goldman Sachs, analysts have lowered their average annual earnings expectations for companies included in the MSCI China Index by 7%, despite profit expectations being raised in certain industries such as internet companies.
The Wall Street Journal reported on May 10th that although Chinese stocks rebounded in the past month, investors were hurt by the short-term uptrend. Cheap stock valuations and the momentum of capital flow may support an increase in the Chinese stock market for a while, but achieving a more sustainable rebound will require a recovery in corporate profits.
On Thursday, June 6th, A-shares fluctuated downward throughout the day, with all three major indices closing lower. At the close, the Shanghai Composite Index fell by 0.54% to 3048.79 points, the Shenzhen Component Index fell by 0.57% to 9340.01 points, the Growth Enterprise Index (price) fell by 0.71% to 1820.45 points, and the China A50 Futures Index rose by 0.26% before the deadline to 12524 points. Over 4800 individual stocks in the market fell, with nearly 150 hitting the limit down, while rising stocks numbered just over 500, accounting for less than 10%.