What is Big Tech?
Big Tech refers to the predominant and most influential technology companies that have extensive global reach, significant financial power, and substantial influence on both the economy and daily life. These companies consistently lead in innovation, digital services, and online platforms, shaping technological trends and market dynamics worldwide. The term most often includes five major companies: Amazon, Apple, Facebook (now Meta), Google (part of Alphabet, Inc.), Microsoft, and most recently Nvidia. These 6 companies make up a staggering 30% of the S&P 500. Before Big Tech, similar applications for a small concentration of companies that sit atop their sector. This is most commonly known as Big Investment, Big Accounting, Big Oil, and Big Media. The members of Big Tech are only 6 companies in the United States valued over $1 trillion dollars.
Amazon, founded by Jeff Bezos, has revolutionized retail through its e-commerce platform, offering an almost limitless variety of products. It also dominates cloud computing with Amazon Web Services (AWS), providing essential infrastructure for countless businesses globally.
Apple, founded by Steve Jobs is known for its iconic iPhone, iPad, and Mac products, blends technology with design to create highly desired consumer electronics and software. Its ecosystem includes services like the App Store, iCloud, and Apple Music, reinforcing customer loyalty through seamless integration.
Facebook, founded by Mark Zuckerberg, later rebranded as Meta, started as a social networking site and has grown into a vast digital empire encompassing WhatsApp, Instagram, and Oculus. It specializes in connecting people, content creation, and virtual reality, aiming to build a more immersive digital experience through the concept of the metaverse.
Google, the cornerstone of Alphabet Inc., started as a search engine but now offers a wide array of services. Their products include YouTube, Android, and Google Cloud. This positioning plays a pivotal role in information dissemination, online advertising, and smartphone software.
Microsoft, founded by Bill Gates, rounds out Big Tech with its dominance in software, particularly through its Windows operating system and Office productivity suite. It has also made significant strides in cloud computing with Azure, gaming through Xbox, and professional networking via LinkedIn.
Nvidia Corporation is considered by many to know be a member of this exclusive group. The company stands as a pioneering force in the computing world, particularly known for its significant contributions to graphics processing technology, artificial intelligence (AI), and gaming.
Other Names For Big Tech
Big Tech may also be known as Big Four or Big Five, and additionally has acronym based names such as GAFA, GAFAM, MAMA. A popular term around 2010 was FANG, FAANG but as Netflix was removed, Google became Alphabet in 2015, and Facebook rebranded in 2021. Since then the most common acronym in reference to these companies has been MAMAA. Due to the AI Boom, Nvidia is now considered Big Tech by many, but this is a relatively new addition.
Who Will Be Next to Join Big Tech?
Based on market cap and the current AI boom, the next closest company is Taiwain Semiconductor Manufacturing Company (TSMC), currently valued over $700B. After TSMC, there is a large gap until the next companies that many consider to be tech companies. These companies are Broadcom (AVGO), Tesla (TSLA), Salesforce (CRM), Netflix (NFLX), Adobe (ADBE), SAP, and Cisco (CSCO). The challenge many of them face presently, is that they are not have the scale or infrastructure that the Big Tech companies do.