Big Tech's Big R&D bill

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Nvidia’s market cap broke the Trillion dollar barrier recently, 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 in Research & Development - R&D

In today’s chart, we explore how much.

Big Tech’s big R&D bill

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 Billion in 2022. The rest of the 5 companies on the list accounted for the remaining $20 Billion 

R&D spending has also been growing rapidly - It increased by 28.4% 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.

As we enter into the AI boom years, the R&D investments by tech companies is likely to remain high.

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