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It was a strong week for U.S. tech investors as major developments in antitrust, artificial intelligence, and executive pay boosted market sentiment. Alphabet and Apple rallied sharply after a U.S. court issued a resolution in Google’s long-running antitrust case. While Google had previously lost to the Department of Justice, the ruling limited the remedies to requiring the company to share search data with competitors rather than forcing a sale of its Chrome browser. The decision also benefited Apple, which continues to receive billions from Google to maintain its search engine as the default on iPhones. Alphabet rose more than 10% for the week, while Apple added 3.2%, contributing to a 1.1% gain for the Nasdaq. Analysts noted that the ruling removed a significant overhang on Google’s stock and cleared the path for expanded AI partnerships, particularly around Google’s Gemini AI models. The judge cited the emergence of generative AI as a key factor, highlighting new competitive pressures from companies like OpenAI, Anthropic, and Perplexity.
Broadcom also saw a notable surge, with shares climbing 13% after CEO Hock Tan announced a $10 billion contract with a new customer, widely believed to be OpenAI. This positions Broadcom alongside its existing AI clients, including Google, Meta, and ByteDance, and pushes its market capitalization to roughly $1.6 trillion, marking a 120% gain over the past year. Analysts emphasized Broadcom’s strong growth trajectory, backed by a robust backlog and rising demand for AI-customized chips.
Meanwhile, Nvidia struggled, with shares declining more than 4% in a holiday-shortened week, marking four consecutive weeks of losses. Microsoft also slipped, continuing a five-week slide despite posting 21% growth over the past 12 months.
Tesla’s stock, down 13% year-to-date amid rising competition from lower-cost Chinese EVs and an aging vehicle lineup, rebounded 5% this week following the announcement of a new CEO pay plan for Elon Musk. The proposed compensation could reach nearly $1 trillion, structured in 12 tranches and contingent on Tesla achieving significant market capitalization milestones, starting with a $2 trillion valuation. Tesla Chairwoman Robyn Denholm described the plan as a strategy to keep Musk motivated and focused on long-term company growth.
Combined, these developments lifted the value of the eight largest U.S. tech companies by roughly $420 billion this week, bringing their total market capitalization to $21 trillion. Collectively, they now account for about 36% of the S&P 500, a historically high proportion. This week highlighted the influence of antitrust rulings, AI expansion, and executive compensation on tech markets, underscoring the sector’s continued impact on the broader investment landscape.
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