The world is undergoing a major transformation in the financial markets, as artificial intelligence continues to change the balance of power among the world’s largest companies.
The technology has boosted the position of U.S. companies, while European firms’ share of the top market capitalization has plummeted.
A study by Ernst Young revealed that the United States included 56 companies in the list of the 100 largest listed companies in the world.
This is in terms of market capitalization until the end of the first half of the year.
China came in second place with twelve companies, followed by the United Kingdom and Japan with five companies each.
Germany recorded a clear decline, with only one company left on the list, Siemens, which was ranked 72nd.
In contrast, SAP and Allianz were out of the top 100.
Nvidia topped the global rankings with a market capitalization of nearly four quarters of $8 trillion, driven by the growing demand for AI chips.
It was followed by Alphabet, Apple, and Microsoft.
The list of the world’s top 10 companies included eight U.S. companies.
Taiwan’s TSMC and Saudi Aramco were the only companies outside the United States in the top 10.
Henrik Allers, managing partner at Ernst Young in Germany, explained that markets are undergoing a historic shift, with investors giving higher valuations to companies linked to the AI value chain.
Such as chip companies, cloud services, data centers, and digital platforms.
He noted that Europe is facing increasing challenges due to the fragmentation of capital markets and weak investment in startups.
This threatens its ability to keep pace with global technological development.
Despite this decline, some European companies, such as Siemens Energy and Infineon, have made progress in their rankings, reflecting continued growth opportunities in the technology and energy sectors.
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