Achieving a $1 trillion market capitalisation makes headlines around the world and the current trillion club in mostly about the technology industry with names such as Microsoft and Apple topping the list.
The market is now looking for the next club members, and two tech players are being talked about: chip-maker Nvidia and China’s digital behemoth Tencent Holdings.
Nvidia is on a roll thanks to its gaming and computer graphics equipment. Nvidia’s stock market valuation has risen more than 75 per cent annually in four out of the past five years.
This year Nvidia’s stock price has steadily risen from $125 back at the beginning of the year to $last week at $255. Its current market capitalisation is $639 billion.
Tencent, however, has had its ups and downs. The business remains the world’s largest video game vendor thanks to its enormous Chinese market and 700 million active users and 120 million paying subscribers. It has dominant positions in China in music, and helped by major stakes in Snap, and messaging (QQ, and its messaging service) and WeChat.
Back in January Tencent came withing touching distance of the trillion club, but in July this year China’s antitrust regulator formally blocked Tencent’s plan to merge China’s top two video game streaming sites, Huya Live and DouYu.
Tencent’s share price suffered badly, and over the past year shares have tumbled from a ‘high’ of $99 to today’s typical $60-$65 range. But few doubt this company’s ability to bounce back.