The secular upward trend in the share of the S&P 500 market capitalisation captured by the largest companies in the US is continuing unabated.
The market capitalisation of FAAMG+, which includes Alphabet, Facebook (Meta Platforms), Amazon, Microsoft, Apple, Nvidia, Tesla & Netflix, hit a record $11.867tr on Friday.
Both Nvidia and AMD have been lifted by the capex race between major technology platforms. Facebook (Meta Platforms) expects to spend between $29bn to $34bn next year on investments in data centres, servers, network infrastructure, and office facilities, up significantly from $19bn this year.
The dominance of major technology platforms is entrenched. The resources at their disposal are unparalleled. Antitrust concerns will inevitably resurface if the ‘market’ is unable to stem the rise in economic concentration.
