These massive tech companies have been top market performers in recent decades.
Over the past few decades, technology has been integrated deeper into every corner of the economy. Technology stocks have been some of the market’s best long-term performers, and the technology sector’s total weighting in the S&P 500 index expanded from 20.7% at the end of 2016 to 29.1% as of the end of 2021. Even megacap companies like Alphabet Inc. (GOOG, GOOGL), Amazon.com Inc. (AMZN) and Tesla Inc. (TSLA) that aren’t technically classified as tech companies by the Global Industry Classification Standard, or GICS, have businesses that revolve around disruptive technology. Here’s a look at the world’s 10 biggest U.S.-listed public tech companies as of Aug. 11 under the GICS classification.
10. Cisco Systems Inc. (ticker: CSCO)
Cisco Systems designs and sells a wide range of networking and security products. Cisco is one of the 10 largest tech stocks of 2022, but it is the only stock on this list that reached its peak market cap more than two decades ago. Cisco was briefly the most valuable company in the world in 2000 during the dot-com bubble, when it reached a peak market capitalization of $555 billion. Cisco may not be the growth darling it once was, but it reported more than $3 billion in net income in the second quarter of 2022.
Market capitalization: $191.6 billion
9. Accenture PLC (ACN)
Accenture is a global systems integrator that provides consultancy, technology and outsourcing services. In June, the Ireland-based tech company posted fiscal third-quarter revenue growth of 21.8% and net income growth of 15.2%. On the company’s earnings call, CEO Julie Sweet mentioned five long-term growth drivers: “total enterprise reinvention, talent, sustainability, the Metaverse continuum and the ongoing tech revolution.” Like many other blue-chip tech stocks, Accenture generates consistent earnings, revenue and free cash flow and is an excellent defensive tech stock investment in an unpredictable market.
Market capitalization: $199.6 billion
8. Adobe Inc. (ADBE)
Adobe provides software applications for creative content production, and the company has successfully transitioned from a desktop-based software company to a cloud-oriented provider. Adobe is one of three stocks on this list that have been a “10-bagger” over the past decade, gaining more than 1,230%. Adobe reported 14% revenue growth in the second quarter. However, it disappointed Wall Street with its guidance for full-year revenue growth of just 12% in fiscal 2022, down from 23% revenue growth in fiscal 2021. Despite the slowdown, Adobe’s top products, including Photoshop, Illustrator and Premiere Pro, remain leaders in their markets.
Market capitalization: $202.1 billion
7. Oracle Corp. (ORCL)
Oracle is one of the world’s largest enterprise software and cloud services providers, specializing in database management. Oracle reported modest 5.4% revenue growth in the second quarter, and net income was down 20.9% year over year to $3.19 billion. However, Oracle is a rare value play among megacap tech stocks. Oracle shares trade at just a 13.1 forward earnings multiple, the lowest of any stock on this list. Oracle has stable top-line growth, generates consistent profits, has an attractive valuation and is reinvesting excess income in stock buybacks and its 1.6% dividend.
Market capitalization: $205.7 billion
6. Broadcom Inc. (AVGO)
Broadcom is a diversified designer, developer and supplier of analog semiconductor devices. Broadcom has been another 10-bagger in the past decade, gaining more than 1,370%. Those returns don’t even include the stock’s 2.9% dividend, the highest yield on this list and a rarity among tech stocks. You wouldn’t know there is a global chip shortage by looking at Broadcom’s recent numbers. In the second quarter, the company reported 22.5% revenue growth and 73.5% net income growth. Broadcom also announced a massive $61 billion acquisition of VMware Inc. (VMW) in May, which could significantly boost Broadcom’s software capabilities.
Market capitalization: $220.8 billion
5. ASML Holding NV (ASML)
ASML is headquartered in the Netherlands and is one of the world’s largest semiconductor manufacturing equipment suppliers. The global semiconductor market could become a $1 trillion industry by 2030, and ASML is the world’s only manufacturer of extreme ultraviolet, or EUV, lithography machines. Chipmakers use EUV technology to print increasingly smaller chip designs. ASML doesn’t design or produce any chips itself; it simply designs the machines that create cutting-edge chips for Intel Corp. (INTC), Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and other chipmakers. ASML shares are up more than 650% in the past decade, and there’s no end in sight to the boom in semiconductor demand.
Market capitalization: $231.9 billion
4. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
Taiwan Semiconductor Manufacturing is the world’s largest contract chipmaker, producing cutting-edge semiconductors designed by Advanced Micro Devices Inc. (AMD), Qualcomm Inc. (QCOM) and other customers. In recent years, Taiwan Semi’s foundries have become even more important to the tech world given that Intel has struggled with its in-house manufacturing. In the second quarter, Taiwan Semi reported 43.5% revenue growth and a record net income of nearly $7.9 billion. Taiwan Semiconductor was founded in 1987 and has been the leading dedicated global semiconductor foundry since, generating a 517% return for investors in the past decade.
Market capitalization: $431 billion
3. Nvidia Corp. (NVDA)
High-end semiconductor maker Nvidia has been one of the most spectacular growth stories in the stock market since the financial crisis in 2008 and 2009. In March 2009, Nvidia’s market cap was under $5 billion. In the years since, the stock has skyrocketed, sending Nvidia’s market cap soaring to a peak of above $820 billion in late 2021. Nvidia shares have pulled back significantly from their all-time highs, but the company continues to churn out impressive growth numbers. In the most-recent quarter, Nvidia reported $8.29 billion in revenue, up 46.4% from a year earlier.
Market Capitalization: $453.8 billion
2. Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company and is known for its Windows operating system, Azure cloud services, LinkedIn social media platform, Office professional software suite and Xbox gaming brand. Microsoft is one of the oldest companies on this list, founded in 1975 and public since 1986. Nearly half a century after its founding, Microsoft reported 12.3% revenue growth in the second quarter of 2022, which was largely a product of its 40% growth in Azure and other cloud services revenue. Microsoft also announced a deal to acquire video game publisher Activision Blizzard Inc. (ATVI) in early 2022.
Market capitalization: $2.14 trillion
1. Apple Inc. (AAPL)
Not only is Apple the most valuable company in the world, but it is also the best-performing tech stock on this list in 2022, falling just 5.1% in a difficult market for tech stocks. Apple is one of the most profitable companies in the world, reporting $19.4 billion in net income in the second quarter. Apple may be the most valuable U.S. stock, but legendary value investor Warren Buffett thinks the stock still has room to run. Apple is by far the largest stock holding of Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B).
Market Capitalization: $2.71 trillion
The 10 biggest tech companies in the world in 2022:
1. Apple Inc. (AAPL)
2. Microsoft Corp. (MSFT)
3. Nvidia Corp. (NVDA)
4. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
5. ASML Holding NV (ASML)
6. Broadcom Inc. (AVGO)
7. Oracle Corp. (ORCL)
8. Adobe Inc. (ADBE)
9. Accenture PLC (ACN)
10. Cisco Systems Inc. (CSCO)
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The 10 Biggest Tech Companies in the World originally appeared on usnews.com
Update 08/12/22: This story was published at an earlier date and has been updated with new information.
