A recent analysis by consulting firm EY reveals that the dominance of US corporations on the global stage remains unparalleled, with Europe and Asia significantly trailing. Among the 100 most valuable companies worldwide, 62 are headquartered in the United States, with American firms claiming nine of the top ten spots. By contrast, Europe fails to produce even one company in this elite group.
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Despite geopolitical tensions and a weakening global economy, the collective market capitalisation of the 100 largest publicly traded companies surged by 25% in the past year, reaching a record $44.9 trillion. This growth has been primarily driven by advancements in artificial intelligence, which have bolstered the valuation of technology companies. The tech sector saw an impressive 40% rise in market capitalisation, outpacing all other industries. Of the 24 technology firms in the top 100, 17 are based in the US, highlighting its unchallenged leadership in this arena.
Apple, Nvidia, and Microsoft currently lead the global rankings, with Apple alone boasting a market capitalisation of nearly $3.8 trillion—almost double that of Germany's entire DAX index, valued at $1.9 trillion. European companies, by contrast, are struggling to remain competitive, with only 18 of the top 100 companies headquartered in Europe and 17 in Asia. German software giant SAP and Dutch semiconductor leader ASML are notable exceptions, ranking 32nd and 33rd respectively.
EY's CEO Henrik Ahlers notes that Europe has largely been sidelined in the AI boom and the broader digital revolution. He observes, 'With very few exceptions, Europe plays a subordinate role in the field of AI and in the digital sector in general.' Ahlers warns that Europe risks falling further behind, as its economy remains heavily reliant on traditional industrial sectors undergoing challenging transformations.
Swiss companies have performed admirably within this landscape, with three firms—Roche, Nestlé, and Novartis—featuring in the global top 100, though their rankings have declined compared to previous years. Roche ranks 46th, Nestlé 51st, and Novartis 66th. Altogether, Switzerland has eight companies in the top 300 and 15 in the top 500, including ABB, UBS, and Zurich Insurance Group. However, as Stefan Rösch-Rütsche, EY's Country Managing Partner for Switzerland, notes, 'It is becoming increasingly apparent that there is no major Swiss player in the field of artificial intelligence.'
While Swiss firms showcase innovation and resilience, the broader picture underscores a growing divide. The United States continues to dominate the tech and AI sectors, while Europe and Asia struggle to compete in a rapidly evolving global economy.
Source: www.moneytoday.ch