Energy powerhouse Saudi Aramco makes it to the list
In business, technology evidently rules. One glaring proof is how tech giants dominate the list of the biggest companies in the world in terms of market capitalization (market cap). Market cap is measured by multiplying a company’s current share price by its number of shares.
Looking at the global top 10 companies, major players from other sectors have also notably broken in. For instance, Saudi Aramco, coming in at number 3, represents the Middle East’s energy sector. Find out which ones land in our list of the world’s 10 biggest companies.
The biggest companies in the world
A good chunk of the world’s largest companies has a market cap of over $1 trillion. This shows how significant these companies are in the global economy.
Note that the roster of the world’s biggest companies can vary regularly as market cap changes. Additionally, a company’s stock price could change every day, hence its market cap is fluid. For instance, based on data from January 2024, Tesla, known for its electric vehicles,would have ranked ninth. Meanwhile, pharmaceutical company Eli Lilly would be in the 10th spot. Moreover, Taiwan-based semiconductor giant TSMC would not be in the top 10.
Another way to put a number on a company’s worth is through valuation. However, analysts can come up with several valuation estimates for one company by using different methods. Whereas with market cap, a company has only one market cap value at any given point, making the task of coming up with a list like the one below easier and accurate. Please note that the market cap method can only be used on companies that have gone public and sold shares.
In the list below, the companies were ranked according to their latest available market cap figures as of March 2024.
1 .Microsoft
Headquarters: Redmond, Washington, USA
Market cap:
Apple has a colossal presence in tech and beyond, and it is celebrated for its innovations in both hardware and software. Among its most important products is the iPhone, which has sold over 2.3 billion units since its unveiling nearly two decades ago.
The company also manufactures Mac computers, iPads, Apple Watches and AirPods — all of which have set new standards in design, functionality and user experience. Recently, the company made waves with the debut of its Apple Vision Pro mixed-reality headset. Venturing into other services, Apply has its own payment and cloud solutions. Its Apple TV+ streaming service is its foray into the digital content market.
Apply is forever etched into history books as the first company to cross the market cap thresholds of $1 trillion, $2 trillion and $3 trillion.
Rightfully earning the top spot among the biggest companies in the world, Microsoft has solidified its status as a cornerstone of the tech industry with its broad range of strategic businesses. Since 1975, it has offered the world game-changing products, such as the Windows operating system, the MS Office Suite and the Microsoft 365, among others.
Over the years, the company has also expanded its reach to stay on top of its game. Microsoft has the search engine Bing. It also dove into cloud computing with Azure. Apart from these, it owns LinkedIn, the biggest professional networking platform. Its gaming segment is strong, thanks to Xbox. And while it doesn’t own conventional equity, the company has invested over $10 billion into OpenAI, the creator of ChatGPT.
Together with OpenAI and NVIDIA, Microsoft recently invested in a Silicon Valley start-up that creates AI-powered humanoid robots.
2. Apple
Headquarters: Cupertino, California, USA
Market cap: $2.791 trillion
Apple has a colossal presence in tech and beyond, and it is celebrated for its innovations in both hardware and software. Among its most important products is the iPhone, which has sold over 2.3 billion units since its unveiling nearly two decades ago.
The company also manufactures Mac computers, iPads, Apple Watches and AirPods — all of which have set new standards in design, functionality and user experience. Recently, the company made waves with the debut of its Apple Vision Pro mixed-reality headset. Venturing into other services, Apply has its own payment and cloud solutions. Its Apple TV+ streaming service is its foray into the digital content market.
Apply is forever etched into history books as the first company to cross the market cap thresholds of $1 trillion, $2 trillion and $3 trillion.
3. Saudi Aramco
Headquarters: Dhahran, Saudi Arabia
Market cap: $2.059 trillion
The only Middle Eastern company to make it to the top 10, the state-owned Saudi Aramco proves itself as a global powerhouse in the energy sector. It currently has both upstream and downstream activities. In the energy landscape, upstream refers to the exploration and production of oil and gas, while downstream encompasses refining, petrochemical manufacturing and power generation.
With the capacity to produce 12 million barrels daily and current output of around 9 million barrels, Aramco plays a pivotal role in the global oil market — despite the country’s supply cuts.
Aramco is also diversifying its portfolio. Notably, it made a $500 million investment in the LNG company MidOcean Energy in 2023.
4. NVIDIA
Headquarters: Santa Clara, California, USA
Market cap: $1.977 trillion
NVIDIA is a prominent player in an ultra-in-demand niche: the development of graphics processors and chipsets. The company caters to a wide range of applications, including personal computing and game consoles.
Going beyond these markets, the company benefits substantially from the AI boom. Case in point: For the fourth quarter of 2023, NVIDIA reported a net income of $12.29 billion. This is an impressive 769 percent rise compared to the year before. This significant increase was driven by strong sales of AI server chips, which are crucial for accelerating the training of AI models.
NVIDIA is also known for implementing a fabless model. This means that it outsources its manufacturing, allowing it to focus on what it does best: design and development.
5. Amazon
Headquarters: Seattle, Washington, USA
Market cap: $1.836 trillion
Amazon, originally an online bookstore, has grown to become a world-leading e-commerce titan and provider of cloud computing services.
Its e-commerce platform boasts 310 million active users globally and features an extensive array of products. It also hosts third-party sellers, vastly expanding its product range. Meanwhile, Amazon Web Services (AWS), launched in 2006, offers a suite of cloud services to businesses, governments and academic institutions.
Showcasing a diverse portfolio, Amazon has also dabbled into subscription services, streaming entertainment and electronic device manufacturing. These devices it manufactures include Kindle e-readers, Fire tablets, Fire TV, and Echo and Alexa smart home devices.
6. Alphabet (Google)
Headquarters: Mountain View, California, USA
Market cap: $1.729 trillion
Alphabet is the parent company of Google. The search engine has a staggering 5.9 million searches conducted every minute. However, the tech behemoth’s reach extends well beyond that. Its long list of offerings includes Gmail, Google Workspace, the Chrome browser, the Android operating system, Google Maps and Waze.
Through Google Cloud, Alphabet also offers comprehensive cloud services. Last year, it announced the opening of its new cloud region in Dammam, Saudi Arabia. It is expected to add $109 billion to the country’s economy.
Apart from all these, the company has further broadened its already strong market presence with its hardware. These include Pixel smartphones, Fitbit devices and the Google Nest smart home collection. Ambitious projects, such as Waymo’s self-driving cars, further demonstrate the tech giant’s ever-innovative spirit.
7. Meta Platforms (Facebook)
Headquarters: Menlo Park, California, USA
Market cap: $1.249 trillion
Meta Platforms, formerly known as Facebook, is the powerhouse behind the world’s largest social media network. As of 2024, Facebook has 3.05 billion monthly and 2.09 billion daily active users. The Meta ecosystem also comprises other social media and communication giants, including Instagram, Messenger and WhatsApp.
Beyond social networks, Meta is considered a pioneer in the virtual and augmented reality (VR and AR) space. Through Facebook Reality Labs, it develops products, such as Meta Quest 2. It has also acquired Oculus, marking its ambitious foray into immersive technologies. This pivot to such technologies was the very reason for its rebranding from Facebook to Meta.
Despite its diversification and technological advancements, advertising remains Meta’s financial backbone, generating over 98 percent of its revenue.
8. Berkshire Hathaway
Headquarters: Omaha, Nebraska, USA
Market cap: $885.99 billion
From its humble beginnings in the textile industry in the 19th century, Berkshire Hathaway has become one of the biggest conglomerates in the U.S. and the world.
It takes pride in a diverse portfolio, owning around 80 subsidiaries. These subsidiaries are engaged in key sectors, including insurance (GEICO), freight rail transportation, retailing, and utility and energy generation and distribution. Berkshire Hathaway also operates manufacturing businesses that make products for industrial uses, construction and consumers.
The American holding company may be best known for its ties with legendary investor Warren Buffet. Buffet has been investing in the company since 1962, acting as its chairman since 1970.
9. Eli Lilly and Company
Headquarters: Indianapolis, Indiana, USA
Market cap: $716.11 billion
Eli Lilly and Company (Lilly) is a global pharmaceutical giant founded in 1876 by a pharmacologist and entrepreneur of the same name. Now, it employs over 33,000 people across its production facilities in 13 countries. A leading healthcare company, it focuses on researching, developing, manufacturing, and marketing human pharmaceuticals worldwide.
Lilly’s diverse portfolio targets critical health areas such as diabetes, oncology, immunology and neuroscience. It has played a pivotal role in addressing global health challenges, including COVID-19. Moreover, it boasts a history of breakthroughs in treatments, being the first to mass-produce insulin and the polio vaccine. Other notable products include Prozac for depression and medications for weight loss.
It has also made strategic acquisitions, including Sigilon Therapeutics, Versanis Bio and DICE Therapeutics.
10. TSMC
Headquarters: Hsinchu, Taiwan
Market cap: $667.33 billion
Along with Aramco, TSMC is one of the two non-U.S.-based companies that have entered this roster. TSMC stands for Taiwan Semiconductor Manufacturing Company.
Founded in 1987, it is the world’s largest independent contract manufacturer of semiconductor products. Meanwhile, it’s the third-largest semiconductor manufacturer overall, following Intel and Samsung. Its significance in the tech world is evidenced by its strategic partnerships with Apple and NVIDIA.
Like NVIDIA, TSMC is in a unique position, having the opportunity to capitalize on the swiftly burgeoning demand for AI chips.
The list of the biggest companies in the world by market cap showcases the dominance of technology firms and Western-based corporations. Nonetheless, it also highlights significant contributions from other sectors and regions. Saudi Aramco stands out as a pivotal non-tech and non-Western entity, representing the enduring importance of the energy sector on a global scale.
Source: economymiddleeast