When it comes to the stock market, there are different categories of stocks based on their market capitalization. Mega cap stocks are among the largest, with market values exceeding $200 billion. These companies are often global giants that have a significant impact on the overall market.
Here’s a closer look at mega cap stocks and some of the top players in this category:
Understanding Mega Cap Stocks
Mega cap stocks are companies with market capitalizations above $200 billion. They are typically well-established, with substantial revenue streams that span across different regions worldwide. Some examples of mega cap stocks include Apple, Microsoft, and Amazon, which are household names known for their innovative products and services.
These companies are often included in popular stock market indices like the S&P 500, where they hold significant weight in the overall portfolio. As a result, many investors unknowingly have exposure to mega cap stocks through index funds and other investment vehicles.
Top Mega Cap Stocks
*Market cap data as of Sept. 11, 2024; revenue as of most recent fiscal year.
1. Apple (AAPL)
Apple is a leading technology company known for its popular products like the iPhone and iPad. With annual revenue nearing $400 billion, Apple has a loyal customer base that drives its continued success in the market.
Market cap: $3.36 trillion
Annual revenue: $383.3 billion
2. Microsoft (MSFT)
Microsoft is a tech giant that offers a wide range of software, services, and devices to its customers. With a market cap of $3.09 trillion, Microsoft continues to innovate in the technology sector.
Market cap: $3.09 trillion
Annual revenue: $245.1 billion
3. Nvidia (NVDA)
Nvidia specializes in graphics processing units used for gaming and artificial intelligence applications. With a market cap of $2.70 trillion, Nvidia is a key player in the tech industry.
Market cap: $2.70 trillion
Annual revenue: $60.9 billion
Editorial Disclaimer: All investors should conduct their own research before making investment decisions. Past performance is not indicative of future results.