In this article, we will take a look at the 15 most valuable NASDAQ companies in the world.
When most people hear NASDAQ, they think of technology given that the Nasdaq Composite Index has many famous tech stocks such as Apple, Microsoft, Amazon and Alphabet that account for a substantial portion of the index.
Over the years, some technology companies have grown substantially thanks to the growth in the internet and the increase in affordability of computers and smartphones.
Whereas there were only 413 million internet users in 2000, there are around 6 billion internet users now. Given the increased affordability of technology, it is estimated that there could be 7.5 billion internet users by 2030.
With so many internet users and also so many computers and smartphones, some tech companies listed on the Nasdaq Composite Index have achieved enormous scale and realize significant profits.
Nasdaq Composite Index & NASDAQ Exchange
When it comes to NASDAQ, there is an index commonly known in the media as ‘the NASDAQ’ that is also known as the Nasdaq Composite Index.
The Nasdaq Composite Index includes all domestic and international common type stocks listed on the Nasdaq Stock Market. As of November, The Nasdaq Composite Index covers over 2,500 stocks listed on the NASDAQ stock market. As a result of its market capitalization weighting method, some stocks account for a far bigger portion of the index versus other stocks.
NASDAQ can also refer to the Nasdaq Stock Market, which is one of the two largest stock exchanges in the United States along with the NYSE.
2022
Given high inflation, the Federal Reserve has raised interest rates six times in 2022 alone and many expect the central bank to raise rates even further. As a result of the rate increases, substantial capital has moved from the stock market to Treasuries given the higher yields.
With the capital movement along with the potential for an economic slowdown in 2023 given the interest rate increases, the Nasdaq Composite Index has fallen 28.5% year to date as of November 11. As a result of the decrease, some leading stocks in the index trade for fairly low valuations.
Nevertheless, if economic data doesn’t meet expectations, the Nasdaq Composite Index could decrease further. Given the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many sectors.
New York Wall Street sign.
Methodology
For our list of 15 Most Valuable NASDAQ Companies in the World, we took the top 15 stocks by market capitalization from the Nasdaq Composite Index and ranked them from #15 to #1.
15 Most Valuable NASDAQ Companies in the World
15. Texas Instruments Incorporated (NASDAQ:TXN)
Market Capitalization as of November 11: $162.9 billion
Number of Hedge Fund Holders: 55
Texas Instruments Incorporated (NASDAQ:TXN) is a leading semiconductor maker with a market capitalization of $162.9 billion that ranks the company #15 in terms of the most valuable NASDAQ companies in the world. On 10/26, Ross Seymore of Deutsche Bank trimmed his price target on Texas Instruments Incorporated (NASDAQ:TXN) to $155 from $160 and kept a ‘Hold’ rating. Seymore thought the Texas Instruments Incorporated (NASDAQ:TXN)’s Q3 was solid but thought the company’s Q4 outlook was concerning.
14. T-Mobile US, Inc. (NASDAQ:TMUS)
Market Capitalization as of November 11: $181.88 billion
Number of Hedge Fund Holders: 96
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the largest telecoms in the United States. On October 28, Paul Gallant of Cowen raised his price target to $201 from $187 and kept an ‘Outperform’ rating on T-Mobile US, Inc. (NASDAQ:TMUS) citing solid Q3 results and a guide raise. As of November 11, T-Mobile US, Inc. (NASDAQ:TMUS) shares have rallied almost 28% year to date and the stock has a market capitalization of almost $182 billion.
13. Cisco Systems, Inc. (NASDAQ:CSCO)
Market Capitalization as of November 11: $183.91 billion
Number of Hedge Fund Holders: 63
Cisco Systems, Inc. (NASDAQ:CSCO) is a leading maker of internet networking equipment with a market capitalization of $183.91 billion. On 11/9, Amit Daryanani of Evercore ISI added the company to its ‘Tactical Outperform’ list given the analyst thinks the company will benefit from better demand tailwinds. Out of the 895 hedge funds in our database at the end of Q2, 63 owned shares of Cisco Systems, Inc. (NASDAQ:CSCO).
12. AstraZeneca plc (NASDAQ:AZN)
Market Capitalization as of November 11: $195.29 billion
Number of Hedge Fund Holders: 47
AstraZeneca plc (NASDAQ:AZN) is a pharmaceutical giant with a market capitalization of over $195 billion. On November 10, AstraZeneca plc (NASDAQ:AZN) dropped plans to submit its COVID-19 vaccine, Vaxzevria, to the U.S. FDA given the estimated lack of demand. Instead, AstraZeneca plc (NASDAQ:AZN) will continue its efforts to sell its COVID-19 vaccine elsewhere.
11. Broadcom Inc. (NASDAQ:AVGO)
Market Capitalization as of November 11: $219.92 billion
Number of Hedge Fund Holders: 66
Broadcom Inc. (NASDAQ:AVGO) is a leading semiconductor maker with a market capitalization of almost $220 billion. On 10/18, Ross Seymore of Deutsche Bank cut his price target to $575 from $635 and kept a ‘Buy’ rating on Broadcom Inc. (NASDAQ:AVGO). Seymoret sees downside risk to expected 2023 estimates for Broadcom Inc. (NASDAQ:AVGO).
10. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization as of November 11: $227.63 billion
Number of Hedge Fund Holders: 47
ASML Holding N.V. (NASDAQ:ASML) makes the most advanced lithography machines in the world. On November 10, ASML Holding N.V. (NASDAQ:ASML) announced it expects to return substantial capital back to shareholders through increasing dividends and also share buybacks. In terms of share repurchases, ASML Holding N.V. (NASDAQ:ASML) intends to buy back up to €12 billion worth of stock by the end of 2025. As of November 11, the company has a market capitalization of $227.63 billion.
9. Costco Wholesale Corporation (NASDAQ:COST)
Market Capitalization as of November 11: $228.15 billion
Number of Hedge Fund Holders: 64
Costco Wholesale Corporation (NASDAQ:COST) is a leading wholesale retailer with a market capitalization of $228.15 billion. On 11/7, Edward Kelly of Wells Fargo downgraded Costco Wholesale Corporation (NASDAQ:COST) shares to ‘Equal Weight’ from ‘Overweight’ and also lowered his price target to $490 from $600. Kelly views Costco Wholesale Corporation (NASDAQ:COST) as a ‘rich multiple stock’.
8. PepsiCo, Inc. (NASDAQ:PEP)
Market Capitalization as of November 11: $245.30 billion
Number of Hedge Fund Holders: 65
PepsiCo, Inc. (NASDAQ:PEP) is a leading beverage maker with a market capitalization of $245.30 billion. On 10/14, Lauren Lieberman of Barclays raised her price target on PepsiCo, Inc. (NASDAQ:PEP) to $185 from $183 and kept an ‘Overweight’ rating. Lieberman thought PepsiCo, Inc. (NASDAQ:PEP)’s Q3 ‘beat and raise’ was bullish given the macroeconomic headwinds.
7. Meta Platforms, Inc. (NASDAQ:META)
Market Capitalization as of November 11: $299.68 billion
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. (NASDAQ:META) is a social media giant that ranks #7 on our list of 15 Most Valuable NASDAQ Companies in the World given its market capitalization of almost $300 billion as of November 11. On November 10, Maria Ripps of Canaccord lowered her price target to $170 from $200 but kept a ‘Buy’ rating on Meta Platforms, Inc. (NASDAQ:META). The analyst cut her target due to multiple compression and notes that Meta Platforms, Inc. (NASDAQ:META) is facing a slowdown in digital advertising.
6. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization as of November 11: $406.54 billion
Number of Hedge Fund Holders: 84
NVIDIA Corporation (NASDAQ:NVDA) ranks #6 on our list of 15 Most Valuable NASDAQ Companies in the World with a market capitalization of over $406 billion. Given the semiconductor headwinds this year, NVIDIA Corporation (NASDAQ:NVDA) shares are down almost 46% year to date. Nevertheless, NVIDIA Corporation (NASDAQ:NVDA) has growth potential in the long term.
5. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization as of November 11: $614.07 billion
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) shares have fallen 51% year to date given the broader market weakness and the company’s high valuation. Recently, Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk’s purchase of Twitter has been a distraction as Musk has had to spend more time on the social media company. Nevertheless, Tesla, Inc. (NASDAQ:TSLA) is still the most valuable car company in the world with a market capitalization of $614.07 billion as of November 11.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization as of November 11: $1.03 trillion
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) recently rejoined the $1 trillion market capitalization club thanks to lower than expected inflation numbers for October. Inflation has slowed growth at Amazon.com, Inc. (NASDAQ:AMZN)’s e-commerce business and rising interest rates have also lowered the company’s valuation. Nevertheless, Amazon.com, Inc. (NASDAQ:AMZN) still ranks #4 on our list of 15 Most Valuable NASDAQ Companies in the World and the company still has substantial growth potential in the future.
3. Alphabet Inc. (NASDAQ:GOOG)
Market Capitalization as of November 11: $1.25 trillion
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) ranks #3 on our list of 15 Most Valuable NASDAQ Companies in the World with a market capitalization of $1.25 trillion. Although its growth has slowed recently, Alphabet Inc. (NASDAQ:GOOG)’s valuation could benefit in the future if interest rates eventually decrease as inflation slows. Given its resources, Alphabet Inc. (NASDAQ:GOOG) has substantial growth potential in AI and machine learning.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization as of November 11: $1.84 trillion
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) is the second most valuable company listed on the NASDAQ with a market capitalization of $1.84 trillion. Although its shares have decreased substantially this year, Microsoft Corporation (NASDAQ:MSFT) is still returning substantial capital back to its shareholders. For the quarter ended September 30, 2022, Microsoft Corporation (NASDAQ:MSFT) returned $9.7 billion to shareholders in the form of buybacks and dividends.
Lakehouse Capital commented on Microsoft Corporation (NASDAQ:MSFT) in a September 2022 investor letter,
During the month, the Fund initiated a new position in Microsoft Corporation (NASDAQ:MSFT), a name that is no doubt familiar to our investors. The company was founded by Bill Gates and Paul Allen in a friend’s garage in 1975 and began dominating the operating system market with MS-DOS by the mid-1980s. The company has come a long way since then and is now widely considered the most critical and indispensable IT mega-vendor for businesses globally. In addition to its well-known Windows operating systems and Office productivity suite, the company has a broad portfolio of strategic products, including a rapidly growing public cloud business in Azure and a sizeable gaming presence.
Microsoft’s foundational products, Office365 and Windows365, are ubiquitous and highly penetrated with circa 90% and 80% market share, respectively. These solutions are deeply ingrained in commercial and personal use globally and across all industry sectors. They serve as stable, high-margin cash flow generators for Microsoft whilst they expand and invest in other growth areas of the business. One particular growth area, which is the most exciting part of Microsoft’s business in our view, is their public cloud service, Azure.
Azure has grown at a rapid clip over the past decade to cement itself as the second-largest cloud service provider globally, behind Amazon Web Services. The business benefits from strong secular tailwinds as cloud adoption continues unabated and there is considerable runway ahead – it’s currently estimated that less than 20% of global IT spend is currently in the cloud. Research indicates that 80% of enterprises use Azure and its market share has grown to 21%, up from 13% five years ago. The mission-critical nature of the product, which is similar to many of Microsoft’s other solutions, is incredibly attractive as it leads to sticky, recurring revenue streams. Something we love to see…”
1. Apple Inc. (NASDAQ:AAPL)
Market Capitalization as of November 11: $2.38 trillion
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is the world’s most valuable tech company and ranks #1 on our list of 15 Most Valuable NASDAQ Companies in the World given its market capitalization of $2.38 trillion as of November 11. Although a potential economic slowdown could decrease demand for Apple Inc. (NASDAQ:AAPL)’s smartphones next year, Apple Inc. (NASDAQ:AAPL) has a substantial user base that will likely still allow the company to generate substantial profits despite the headwinds.
You can also take a look at 15 Biggest IT Companies in the World and 15 Biggest Insurance Companies in the World.
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Disclosure: None. 15 Most Valuable NASDAQ Companies in the World is originally published on Insider Monkey.
