“Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not.” - Marc Andreessen (Entrepreneur & Investor)
The US is the world’s leading centre for innovation and distribution of technology. It is lead by hubs like Silicon Valley and access to funding from leading Venture Capitalists along with government support.
Technology like computer science, IT, and more recently, Machine Learning, Artificial Intelligence, etc. have been woven into the fabric of every industry from the early 2000s.
The importance directly correlates to the allocation of budget for tech specifically across industries like financial services, healthcare, media, and entertainment. It stood at 7-7.5% in 2020 versus 4-5% in 2019.
Both innovation and demand have led to an explosion in the market cap of companies like Apple, Amazon, Google, Microsoft, HP, and others. In this blog, we’ll look at 10 of these big tech companies and stocks.
Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of US' most popular technology sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.
How Big Is The US Technology Industry?
The tech industry contributed 12% or $2.3 trillion to the US GDP in 2019. The sector generated approximately 18.2 million jobs and $1.3 trillion in wages the same year.
The US tech sector also paid $503 billion in taxes in 2019. Data for 2020 suggests that the total spending on tech across the world was $5.2 trillion of which the US spent the most - approximately 32%.
The US’ spending on tech is expected to increase by 1% in 2021 as per estimates by IDC. The expenditure is compensated by the revenue and taxes generated by global powerhouses like Apple and Microsoft.
Apple became the world’s first trillion-dollar company in 2018 and continues to rule the roost when it comes to market cap. Microsoft became a trillion-dollar company shortly after in 2019.
However, Microsoft has a stronger credit rating (AAA) than the US government. Apart from that, there are multiple small and medium-tech companies that constantly add to the GDP of the US.
Fastest growing tech in the US and the world includes:
Internet of Things
The US consistently ranks in at least the top 5 for emerging tech and favourable policies for innovation. The US is the most innovative economy in the world, a fact that’s useful for tech and healthcare.
Watch this video to know more about US stock advice on Cube Wealth
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.
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