Amid the ongoing Russia-Ukraine crisis, 24 of the top 25 technology* companies reported a combined loss of $1.3 trillion in market capitalization (MCap) in Q1 2022, finds GlobalData. The leading data and analytics company notes that Microsoft, Meta and Tencent each lost over $100 billion in valuation.

Keshav Kumar Jha, Business Fundamentals Analyst at GlobalData, comments: “Increasing inflationary pressure and the Federal Reserve’s indication of an interest rate hike led to a broad sell-off in technology stocks in January, which was aggravated by the Russia-Ukraine conflict in February.”

GlobalData analyzes the results of key technology companies in the top 25 technology companies by MCap ranking:

Microsoft

Despite Microsoft having more than 20% growth in revenue and its net income in Q2 FY2022 being greater than that in Q2 FY2021, macroeconomic conditions and geopolitical unrest halted the dream run of Microsoft’s stock, which gained approximately 55% in 2021.

Meta

Meta’s concerns about Apple’s iOS privacy changes continued to affect investor confidence in its stock, which was further exacerbated by the fear of losing users to competitors such as TikTok and YouTube, and dismal earnings forecast for 2022.

Tencent

Tencent’s valuation continued to decline in Q1 as investors chose to sell down the company due to the Chinese government’s increased scrutiny of top tech companies.

Apple and Alphabet

Apple and Alphabet lost over $60 billion in MCap in Q1 2022. Despite growth in revenue and net earnings in their recent quarterly reports, both the tech giants’ shares fell mainly due to the prevailing bearish mood in the stock market.

Advanced Micro Devices (AMD)

AMD was the only company in the top 25 that reported a gain in valuation. Its revenue and earnings growth in 2021 and robust guidance for 2022 helped AMD gain $4.2 billion in MCap.

However, the global shortage of chips and supply chain issues have been aggravated by geopolitical tensions as a result of the war between Russia and Ukraine, the major global suppliers of palladium and neon, the two resources used in semiconductor chip production.

Others

Major semiconductor companies including NVIDIA, Taiwan Semiconductor, Samsung, ASML, Broadcom, Intel, Qualcomm, and Applied Materials reported a decline in their MCap in Q1.

*Technology companies include software and hardware developers, IT service providers (including internet-based service providers), and manufacturers of electronics, including semiconductors and mobile devices. GlobalData ranks the top 25 companies based on MCap performance.