Economy

Tech companies' AI race  

Fund CEO: "Several tech companies worth more than emerging countries" 

 

Första APfonden is one of the winners at Nvidia's rally, writes TT. The fund's holdings in the American chip manufacturer amounted to 600,000 shares at the turn of the year, which then corresponded to almost SEK 3 billion.  

 

It is admittedly a small part of the entire fund capital of SEK 454 billion - but the tech giants are becoming increasingly important, says Första AP-fonden's CEO Kristin Magnusson Bernard.  

 

- Several of these companies are worth more than a number of emerging countries. For us investors it becomes, if you have to toughen it up a bit, should we analyze India or Nvidia?  

 

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Nvidia worth more than the GDP of almost every country in the world  

 

Nvidia's market value now beats the GDP of all the world's nations, except for eleven countries, writes Market Watch. The chipmaker is the third largest company in the US, where only Microsoft and Apple have higher valuations on Wall Street.  

 

After Nvidia's financial results this week, the stock rallied further, reaching $2 trillion in market capitalization. That puts Nvidia ahead of the GDP value of countries such as Russia, South Korea and Australia, according to IMF data from February.  

 

Bloomberg's John Authers also compares the tech sector to countries. In an analysis, he writes that the tech companies in the "magnificent seven" currently generate greater values than all countries apart from the USA, China and Japan. 

Nivida's share has surged over 230 percent in twelve months. 

 

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NATO process Sweden's application  

Gripen deal raises questions about counter-buying to Hungary  

 

Hungary's purchase of four more Gripen planes has a secret price tag. But the deal involves more than the plan itself, writes SvD Näringsliv.  

 

Within the defense industry, counter-purchases or offsets are often included, which in this case means that Swedish companies invest in Hungary as part of the agreement.  

 

- In the end, it used to be 160-200 percent of the order value, and I think it's still like that today, says Lars Helmrich, head of aviation and space equipment at FMV.  

 

When FMV signed a contract with Hungary in 2001, Saab was responsible for the counter-purchases. Hungary then leased fourteen Gripen planes and the counter-purchases amounted to SEK 7.5 billion, 110 percent of the order.