Microsoft, Apple, Nvidia, Google are now bigger than the DAX index

on May 28, 2024
  • Nvidia’s market cap of over $2.6 trillion is bigger than all German-listed firms.
  • The six biggest US companies are also bigger than all publicly traded companies in Europe.
  • Analysts expect that US equities have more upside if the Fed starts cutting rates.

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American stocks’s valuations is getting out of hand. The US now has 6 companies with a market cap of over $1 trillion, with Microsoft being a $3 trillion firm. Altogether, these firms are now valued at over $13.7 trillion. 

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Nvidia is bigger than all German companies

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A lot can be said about these valuations. For example, Nvidia’s market cap of over $2.6 trillion is bigger than the German DAX index, which has a combined valuation of almost $2 trillion. It is also bigger than all publicly traded German companies, including well-known brands like SAP, Siemens, and Deutsche Telekom.

Nvidia’s superior market cap happened as the company reported strong earnings growth. Its quarterly revenue soared by over 200% in the first quarter to over $24 billion. Analysts expect that the company’s revenue will be over $119 billion and $155 billion in 2024 and 2025, respectively. 

dax vs nvidia

Nvidia vs DAX index

Many German companies are growing at a slower pace than their American peers, which explains their cheaper valuations despite their higher revenue figures. Volkswagen, BMW, Mercedes Benz, and Deutsche Telekom made over $800 billion in revenue in 2024. 

The six biggest American companies are also worth more money than all 1,050 publicly traded companies in Europe that have a combined market cap of about $12.7 trillion. The European figure includes heavyweights like Novo Nordisk, LVMH, ASML, and L’Oreal.

In France and the UK, all publicly traded companies have a market cap of over $3.12 trillion and $3.4 trillion, respectively. 

All US listed companies are bigger than the US GDP

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The numbers get bigger when you include all publicly traded companies in the US, which have a market cap of over $54 trillion. In contrast, the US has a Gross Domestic Product (GDP) of almost $28 trillion. 

US equities have jumped to a record high, with the Nasdaq 100, Dow Jones, and S&P 500 indices soared to a high of $18,500, $40,000, and $5,340, respectively. 

Analysts expect that these indices will continue doing well over time, especially when the Federal Reserve starts cutting interest rates later this year. Those cuts will incentivise more investors to move from money market funds to stocks.

Most importantly, American companies are seeing strong revenue growth. Data by FactSet shows that companies had a revenue growth of 6% in Q1, its biggest growth since Q1’22. The S&P 500 index has a forward PE ratio of 20.5, slightly above the 5-year average of 19.2.

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