Big Tech's Big R&D bill
Ranking R&D spend of the 10 biggest companies in Nasdaq
Thanks for subscribing to Trendline.
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.
💡 Business Quiz 💡
Thanks for the awesome responses to this section. Love that you find it interesting 😃
This week’s question is present below. Tune into next week’s email to see the Answer.
Which company spent more on R&D in 2022 than Tesla?
Answer to last week’s business quiz question:
That’s all for this week. Thanks for reading! 👋