The global top 25 technology companies have lost over $600 billion in market capitalisation (Mcap) in the third quarter of 2023, compared to an over $2 trillion gain in the previous quarter, according to a report by London-based GlobalData.

Most of the top technology stocks were affected by high bond yields, a fading Artificial Intelligence (AI)-driven market rally from the highs of June 2023, and sluggish global economic conditions due to surging oil prices.

Apple Inc. alone lost over $380 billion in Q3 2023 but is still up 29% over its valuation at end-2022, the report said.

“Apple’s stock peaked during the quarter, hitting a market capitalization of $3.07 trillion on July 31, 2023. But the stock was dented by the news of the Chinese government’s decision to expand the ban on Apple products to state companies and government-sponsored entities,” said Gracio Benher, Business Fundamentals Analyst at GlobalData.

Although the Chinese government refuted issuing such a directive, he stated that the damage was already done to the stock.
 
Top semiconductor stocks reported a mixed quarter, with companies such as ASML, AMD, Texas Instruments, and Applied Materials losing market value.
 
Among the top 25, NVIDIA mopped up $19 billion in the third quarter, though its stock saw just 1.86% overall growth. However, the chip company’s share has risen by 196% since the beginning of 2023.
 
The notable gainers are Alphabet and Meta Platforms, which gained market value of over $145 billion and $46 billion in the third quarter, respectively.  

“Going into the last quarter of 2023, the deflated tech stocks may get a boost from the third-quarter earnings, which are expected to benefit from strong consumer demand and a resilient economy,” Benher said.

However, volatile economic conditions fuelled by rising oil prices and the Israel-Palestine conflict could pull back a potential rally, he added.

(Editing by Seban Scaira seban.scaria@lseg.com)