Ranking R&D spend of the 10 biggest companies in Nasdaq
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Nvidia’s market cap broke theTrillion dollar barrierrecently, becoming only the 8th public company ever do so.
Apart from Saudi’s Aramco and Tesla, all other 6 companies to enter the trillion dollar club are technology companies – Apple, Microsoft, Amazon, Meta, Alphabet and Nvidia.
Most tech markets are hyper competitive and to keep up their growth, tech companies invest a lot of money inResearch & Development – R&D
In today’s chart, we explore how much.
The 10 largest companies listed on Nasdaq100 spent a whopping$222 billion on R&D in 2022.
The Big Tech are also the biggest spenders on R&D.
Amazon, Alphabet, Meta, Apple and Microsoft – collectively spent$202 Billionin 2022.The rest of the 5 companies on the list accounted for the remaining $20 Billion
R&D spending has also been growing – It increased by28.4% since 2021 and is 6.5x higher than 10 years ago.
Amazon leads the pack as the biggest spender by a long margin, followed by Alphabet (parent of Google) and Meta.
Nvidia, the latest entrant to Trillion Dollar market cap club, spent $7.3 billion on R&D in 2022.
In terms of % of revenue, Nvidia spent 27% of its revenue – the 2nd highest in the list after Meta.
As we enter into the AI boom years, the R&D investments by tech companies is likely to remain high.
That’s all for this week. Thanks for reading! 👋
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