As the GenAI Revolution accelerates, our Cloud & AI Confidence Index has reached an all-time high of $7.79 trillion and continues to reflect enormous market demand for the transformative technologies and services offered by the Cloud Wars Top 10 companies.
Since our last posting of the Cloud & AI Confidence Index 12 weeks ago, the index–the combined total of the market caps of the Cloud Wars Top 10 companies–has risen 8.3%, up $600 billion to that total of $7.79 trillion.
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And while Microsoft and Amazon contributed the bulk of that increase, the soaring valuations that make up the Cloud & AI Confidence Index have been broad and deep, as shown in the table below.
But first a few highlights:
- Nine of the Top 10 experienced significant jumps in their market caps over those 12 weeks, with Oracle being the only company whose market cap fell.
- The biggest climbers based on dollar volume were Amazon, up $220 billion; Microsoft, up $200 billion; and Salesforce, up $61.2 billion.
- By percentage, the biggest increases came from Snowflake, up $34.2%; Workday, up 28.2%; and Salesforce, up 27.9%.
- Oracle, the lone decliner over the 12-week period, saw its market cap fall by 3.7%.
Now, I realize that you might be wondering why any of this matters: other than tossing around some titillating big numbers, what’s the point of the Cloud & AI Confidence Index? Most important, why should you care? Let me share my view on why these numbers–these incredibly big numbers–are vitally important for business executives.
First and foremost, I believe that in these extraordinary times, the index serves as highly credible proxy for the level of confidence business leaders have in the Cloud Wars Top 10 companies for those world-shaping vendors to help those leaders harness the full power and potential of the GenAI Revolution.
In the tech industry, market caps are largely a barometer for growth potential. And these stratospheric valuations reflect enormous confidence among business leaders that GenAI will live up to its promise as a once-in-a-generation phenomenon that will forever redefine how the world lives, works, plays, and creates.
And a glance at the remarkable valuations in the table below shows that it’s not just the giants–The Trillion-Dollar Club–driving all that confidence for all that future growth. Again, bear in mind that with the exception of Oracle, the rising valuations across the Cloud Wars Top 10 reflect the booming appetite among business customers for AI training, LLMs, AI services, AI-powered applications, AI-enhanced databases, AI-powered low-code and no-code solutions, and much, much more. (And I am a strong believer that Oracle, which will release its fiscal Q3 numbers in early March, will not be an exception for much longer.)
Broad-based confidence, indeed: Snowflake and its Data Cloud leadership, up 34.2%; SAP and the promise of end-to-end Business AI, up 13.6%; Workday and its unified data model across Financials and HCM, up 28.2%; ServiceNow using AI to improve end-to-end enterprise workflows in concert with existing legacy apps, up 13.8%; and IBM with its ability to leverage AI across data, multicloud, and industry-specific solutions, up 20.4%.
Looks to me like a lot more evidence that what we have here is the greatest growth market the world has ever known.
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