Technology shines in the US. Where is it in Europe and Spain?

Technology continues to be (and will be hand in hand with the almost infinite possibilities of generative AI) the great ally in the financial markets. After a dream 2023, within a S&P 500 which is up 11% so far this year, only 7% is due to the increases in all values, but 4%, specifically, is produced by advances of a single value: NVIDIAwhich has become for the second consecutive year the watchword of Wall Street, exemplifying the advances, especially up to the highs experienced by the Nasdaq.

To give us an idea of ​​the magnitude and specific weight, which is also gaining traction, in feedback mode on Wall Street, the ‘magnificent 7’ that this year have a display, in terms of profits, clearly unequal and heterogeneous , They already represent 33% of the total capitalization of the American indicator of indicators, the S&P 500.

Within the S&P 500, with its subsequent 11 indices that it encompasses, two are performing the best by far. On the one hand, the advance of that relating to telecommunications services, with a 21.15% reboundin which they are included Microsoft, NVIDIA and also Manzana and information technology, to which both Meta (Facebook) as Alphabet-A.

That is, everything is directed to the best of the best in the American technology sector to explain the momentum of the indicators on Wall Street so far this year.

So far perfect, but…What is happening in Europe and Spain with technological values?. Here we analyze this graph from 6 years ago in a world where clearly, if you move, you don’t appear in the photo. Innovation is of such caliber that if you do not overcome your own obstacles and improve those of your competitors, you leave the ranking.

We see how a US without Nvidia already far surpassed Asia, despite the strong presence in China and Hong Kong while, in the rear van, a Europe commanded by SAP. And that has hardly changed in the Old Continent, which still lacks major companies in the field of technology, while the sector replicates, also by contagion, the advances that come from the US.

If we look at the capitalizations, The truth is that going down to 12th place to find the first European company, the company from the netherlands ASML with just over 377,310 and now we have to go down to 18th place to find SAP with 228,430 million in capitalization. The third, the French Schneider Electric we found it in 29th place with 142.110 millionlight years away from American mega-capitalizations.

The three are among the 8 that weigh the most within the Euro Stoxx 50, with ASML with almost 8.5%, the German SAP with 4.12% and Schneider Electric with almost 3%, but with companies such as the French company deluxe LVMHthe utility TotalEnergies, among other. That is, between the three of them they represent 15% of the total pan-European indicator, compared to 33% of the megacaps in the US.

The German company SAP, which, by the way, remains within the trend portfolio of Investment Strategies, with that annual advance of more than 26%.

Of course, in the Euro Stoxx 600 we check like the 18% that raises their technological index, with these companies in portfolio, doubles the indicator’s rise so far this year, 9%. Here they come into play, among its 10 largest components in addition to those mentioned, Prosus, Infineon Technol, Cap Gemeni, Dassault Syst,STMicroelectrand the first Spanish, Amadeus.

In the Spanish Ibex 35, technology is also represented by Telephone, Cellnex and Indra. Between the four they capitalize 76,228 million, below the largest Inditex, at the end of April, according to data from the selective report for the month of April. Amadeus occupies sixth place with 4.83%, the eighth Telefónica, 4.34%, the ninth Cellnex 3.93% and the twenty-fifth, Indra, 0.57%. A little specific weight in the overall index, 13.67%.

In this way we see how Technology, in capital letters, is gaining weight in Europe, but it remains with a limited presence in the Spanish case. and only with a presence in the most traditional fields, such as telecommunications in the case of Telefónica and its infrastructures with Cellnex.

Only the technological solutions of Amadeus and Minsait, the technological area of ​​Indra, that is expected to be sold, thereby losing weight in the company, remain chemically pure in the most advanced field of innovation in this field.

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