The United States has solidified its position as the undisputed global economic powerhouse, now hosting 61 of the world’s 100 most valuable companies. While this figure represents a slight decrease from the previous three years, the nation’s dominance has demonstrably intensified, according to analysis from the Handelsblatt Research Institute. These 61 US corporations now command a staggering 76% of the collective market capitalization of the world’s top 100, a level of influence unseen for over half a century, predating the significant rise of Asian and European corporate entities.
This unprecedented consolidation of power is largely attributable to the exceptional performance of a handful of American technology giants. Nvidia, Alphabet, Amazon, Apple, Broadcom, Meta and Microsoft collectively boast a market capitalization exceeding €18.3 trillion – representing a remarkable 40% of the entire market value of the global top 100. This figure marks a dramatic increase from 27% just five years ago and a mere 14% a decade prior. For context, the combined value of approximately 7,500 European corporations scarcely surpasses the market value of these seven American tech behemoths.
The relentless ascent of these technological titans has fueled anxieties within financial markets regarding a potential high-tech stock bubble. However, these concerns appear largely unfounded, as the sector’s robust real-world profits mirror the soaring valuations. The “Big 7” are projected to generate a net profit of approximately €550 billion this year, accounting for a substantial 30% of the total profits earned by the world’s top 100 companies. Just five years ago, this figure stood at €176 billion, representing 20% of the total.
The implications of this transatlantic imbalance are increasingly significant. While Germany maintains a relatively modest presence in the top 100, with SAP (40th), Siemens (72nd) and the newly added Allianz (100th) – fueled by a substantial 29% annual profit increase – the overall performance of European corporations lags far behind. The inclusion of Airbus (91st), a European joint venture, provides a flicker of European strength. Conversely, the Deutsche Telekom’s recent losses have relegated it from the top 100 entirely, highlighting the challenges facing European competitiveness in the face of American technological ascendancy. The widening economic gap raises questions about global trade balance, investment strategies and the potential for protectionist measures as other nations grapple with the consequences of US corporate dominance.
