U.S. tech megacaps surged sharply this week, lifting the combined market value of eight trillion-dollar companies to $21 trillion. Investors cheered as Google’s antitrust ruling cleared the way for Alphabet and Apple to maintain key partnerships. Meanwhile, Broadcom announced a $10 billion AI contract, boosting its stock. Tesla also saw gains after revealing a proposed pay plan for CEO Elon Musk.
Alphabet shares jumped 9% after a court ruling limited antitrust penalties. Consequently, investors gained confidence in Google’s ability to retain its Chrome browser arrangement. This decision also helped Apple, which receives billions from Google for being the default iPhone search engine. As a result, Alphabet rose over 10% for the week, while Apple added 3.2%, lifting the Nasdaq by 1.1%.
Analysts noted the ruling removed a major overhang on both companies. Additionally, it opens the door for larger AI collaborations involving Google’s Gemini models. Generative AI has altered the market, with new competitors like OpenAI and Anthropic challenging traditional search dominance. Therefore, tech investors see opportunities for growth across platforms.
Broadcom’s stock jumped 13% after reporting better-than-expected earnings. CEO Hock Tan revealed a $10 billion contract with a new client, likely OpenAI. The deal adds Broadcom to the trillion-dollar club, joining other companies that provide AI chips to Google, Meta, and ByteDance. Analysts expect continued growth supported by a significant backlog and increasing AI demand.
Not all megacaps performed strongly. Nvidia shares fell over 4%, extending a four-week decline. Microsoft also dropped, slipping for five consecutive weeks, although both companies remain up significantly over the past year. Despite these declines, U.S. tech megacaps continue to dominate market capitalization, accounting for roughly 36% of the S&P 500.
Tesla shares rose 5% after announcing a proposed CEO pay package for Elon Musk. The plan could be worth nearly $1 trillion, distributed in 12 tranches, contingent on Tesla nearly doubling its market cap to $2 trillion. Tesla’s leadership says the package aims to keep Musk focused and motivated to deliver strong company results.
Overall, U.S. tech megacaps gained a combined $420 billion, driven by court rulings, strategic AI deals, and executive incentives. Investors remain confident that these companies will continue leading innovation and growth in technology.
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