The US tech sector is now worth more than the entire European stock market.
American tech companies have a combined market capitalization of $9.1 trillion. That’s more than all of Europe, which, including the UK and Switzerland, is worth $8.9 trillion, Bank of America said in a note to its clients on Thursday.
This is the first time American tech stocks have passed the European market.
It’s important to highlight, though, that the five biggest US tech giants account for almost 80% of the market — Apple, Microsoft, Alphabet, Amazon, and Facebook are worth a combined $7.5 trillion.
BofA also emphasized how fast the American tech sector is growing, saying that in 2007, Europe’s market cap was about four times the size of US tech.
Apple is an example of how fast and furiously these companies are growing.
In August, the iPhone maker became the first US company to hit a market cap of $2 trillion, two years after being the first one to value at $1 trillion. It essentially doubled its value in just 24 months.
These big five tech stocks also account for about half of the value of the Nasdaq 100, which consists of the 100 largest traded non-financial institutions.
Actually this is a concern for some strategists, who say diversity is critical for a strong and healthy market.