Apple, Amazon and Nvidia: Tech Giants Driving S&P 500 Growth

Over the past three years, companies, tech giants such as Apple, Amazon and Nvidia have led the S&P 500 in growth, driven by the growing demand for artificial intelligence-based solutions. This technology has transformed the investment landscape, generating a wave of opportunity similar to that experienced with the advent of the internet in the late 1990s.

Strong Results and Rising Projections

The technology sector closed 2021 with an impressive 37.3% increase in earnings. While 2022 held steady, 2023 showed a 9.1% rebound. Projections for 2024 and 2025 point to growth of 20.1% and 21.1%, respectively, according to LSEG data.

The “Magnificent 7”: The Key Group in the Tech Sector

Companies such as Alphabet, Meta, Microsoft and Tesla make up this select group that represents the thermometer of the technology industry. Diversified in areas such as digital communication and consumer, these companies project 33% growth this year, contrasting with the modest 4% of the rest of the S&P 500, according to FactSet.

Despite solid projections, a slowdown is expected by the end of 2024 and 2025, with 24% and 18% increases in earnings over the past few quarters. However, Apple and Broadcom stand out as exceptions by showing an acceleration in their figures, with estimated growth of up to 25.3% for Broadcom in 2025.

AI: The Driver of Innovation and Profitability

Artificial intelligence continues to transform industries, consolidating tech companies as profitability leaders and innovation pioneers. This sustained growth reaffirms the importance of these companies in the global economy.

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