Microsoft reclaims top spot in the Russell 1000 index following 26.7% annual growth
There's been a major rejig in the positions of the magnificent seven
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As FTSE Russell started sharing details about companies about to enter or leave the Russell 3000 and Russell Microcap indexes, the news of Microsoft reclaiming its position at the top in the Russell 1000 (large cap) index after three years became the topic of conversations in business circles.
This comes on the heels of Microsoft increasing its total market cap by 26.7%, from $2,284.6B to $2,893.6B. The top spot was previously held by Apple since 2021, which has slid to the second spot after losing 2% market cap in the last year.
At the third position in the Russell 1000 index is NVIDIA, which climbed 3 spots (previously at 6), fueled by a 215.20% increase in market cap.
Alphabet and Amazon are in fourth and fifth positions, respectively. Both, despite an increase in market cap (47.60% for Alphabet, 68.30% for Amazon), slipped in the rankings this year due to the annual gains made by NVIDIA.
Here are the top 10 in the Russell 3000 index:
| Rank | Company | Annual increase in market cap (2023-2024) |
| 1. | Microsoft | 26.70% |
| 2. | Apple | -2.00% |
| 3. | NVIDIA | 215.20% |
| 4. | Alphabet | 47.60% |
| 5. | Amazon | 68.30% |
| 6. | Meta | 77.20% |
| 7. | Berkshire Hathaway | 19.30% |
| 8. | Eli Lilly | 97.60% |
| 9. | Broadcom | 130.70% |
| 10. | Tesla | 12.20% |
All companies that comprise the magnificent seven (Microsoft, Google, NVIDIA, Alphabet, Amazon, Meta, Tesla) are a part of the top 10 in the Russell 1000 index.
In the 2024 rankings, Tesla slipped two spots to the 10th position. Amongst the top 10, it also posted the second-worst growth in market cap, only next to Apple.
The two new entrants to the list of top-10 companies by market cap are Eli Lilly and Broadcom. In 2023, Eli Lilly was placed at the 15th position and has moved up seven spots in the last year. As for Broadcom, the company, fueled by a 130.7% rise in market cap, has moved to the 9th position, fifteen spots up from the previous year’s ranking.
For the unversed, the Russell 3000 index comprises the top 3000 stocks in the United States. Of it, the top 1000 are categorized as Russell 1000 (large cap) while the bottom 2000 form a part of the Russell 2000 (small cap) index.
Amongst the top 10, it’s Microsoft that everyone’s talking about. Much of its rise is a result of investments in Artificial Intelligence, integration of AI into native software and services, and the unparalleled expansion of Microsoft Azure. AI also turned out to be the reason behind NVIDIA’s recent success!
What’s your take on Microsoft’s top position in the Russell 1000 index? Share with our readers in the comments section.
