Research: AI boom cements US dominance, Europe falls further behind

Among the ten most valuable companies in the world, eight are American, the only exceptions being Taiwan’s TSMC and Saudi Arabia’s Saudi Aramco.

“We are currently witnessing a historic shift in the balance of power on the world’s stock exchanges,” said EY Germany CEO Henrik Ahlers.

Investments especially reward companies key in the development of artificial intelligence, such as chip manufacturers, providers of cloud computing services, platforms and data centers, Ahlers explains.

According to his words, Europe risks a long-term lag in one of the key technologies of the future due to fragmented capital markets and a less developed system of financing startups with venture capital.

Back in 2007, Germany was represented by seven companies among the 100 companies with the highest market value, and today only one, which shows what challenges the largest European economy is facing, EY notes.

Europe is still strong in industrial engineering, but today’s stock markets primarily reward a leading position in technology, concludes Ahlers.