Microsoft Corp., Nvidia Corp. and Apple Inc. are now worth more combined than China’s stock market.

With a total market capitalization of about US$9.2 trillion, the three most valuable tech firms have overtaken all of the nearly $9 trillion worth of stocks actively traded on Chinese exchanges excluding Hong Kong, according to data compiled by Bloomberg. 

Investor demand for artificial intelligence exposure has propelled many shares in the sector to record highs.

Nvidia — arguably the biggest beneficiary of a massive flood of AI spending of the past year — saw its market capitalization hit $3 trillion this week, becoming the first computer-chip firm to do so. 

The Santa Clara, California-based company has dominated the market with its highly sought-after products that help power data centers running complex AI computing tasks. Meanwhile, Microsoft has invested in OpenAI and is infusing AI features in its products and services.  

Apple has not had the strongest showing this year as the technology giant’s shares were pressured by concerns over cooling iPhone demand in China and a $2 billion fine from the European Union. However, shares in the company have just turned positive for 2024 as investor sentiment toward the iPhone maker slowly improves.

“Momentum and growth seekers will be content to trust in Microsoft, Apple and Nvidia owing to their powerful competitive positions, fat profit margins and strong balance sheets,” said Russ Mould, investment director at AJ Bell. 

“The danger here is to mistake reliability for safety, again because a very lofty valuation can leave a share price exposed on the downside if expectations are very high and something unexpected happens,” said Mould.