The United States continues to solidify its economic dominance on the global stage, now housing 61 of the world’s 100 most valuable corporations, according to calculations from the Handelsblatt Research Institute. While this figure represents a slight decrease from the previous three years, the proportion of global market capitalization controlled by US companies has significantly increased, reaching a staggering 76% – a level of hegemony not seen for over half a century.
This surge in American power isn’t attributable to broad-based economic growth, but rather concentrated within a handful of technology giants. Nvidia, Alphabet (Google), Amazon, Apple, Broadcom, Meta (Facebook) and Microsoft collectively boast a market capitalization of €18.3 billion, accounting for 40% of the total value of the world’s top 100 companies. This represents a sharp escalation from just five years ago, when their combined value constituted only 27% and a mere 14% a decade prior. To put this into sharp perspective, the combined value of approximately 7,500 European companies (€18.1 billion) falls short of the valuation of these seven American tech behemoths.
The concentration of wealth and power within these companies is prompting growing scrutiny on financial markets, with concerns surfacing about a potential high-tech bubble. However, these fears are tempered by the robust underlying profitability of the “Big 7”. Their net profits for this year are projected to reach €550 billion, representing a significant 30% of the total earnings of the top 100 global corporations. This compares to €176 billion, or 20%, five years ago.
The implications for global trade and economic policy are considerable. This unprecedented American dominance raises questions about fair competition, data governance and the potential for geopolitical leverage. The concentration of this much economic power in a single nation creates vulnerabilities and amplifies the impact of domestic policy decisions on the global economy.
Germany’s representation within the top 100 remains comparatively modest, with SAP (40th), Siemens (72nd) and Allianz (100th) – the latter demonstrating significant profit growth – securing positions. Airbus, a European joint venture, also secured a place at 91. Conversely, Deutsche Telekom was relegated from the ranking due to a significant annual loss. This situation highlights the challenges faced by European companies in competing with the scale and innovation power of their American counterparts, demanding a reconsiderations of industrial strategy and competitive frameworks within the European Union.