SACRAMENTO, the United States, June 4 (Xinhua) -- California, the largest economy and most populous state in the United States, has reclaimed the top spot for housing the most Fortune 500 companies in the country, according to a report by Fortune magazine.

With 57 companies headquartered within its borders, California edged out Texas and New York, which are tied for second place with 52 companies each, said the report published on Tuesday.

This marks a significant win for California, which last held the top spot in 2014.

The Golden State's success comes despite losing five companies from the list this year. However, this loss was offset by the addition of nine newcomers, including food delivery company DoorDash, real estate investment firm Prologis, cleaning product manufacturer Clorox, and software company Workday.

Calling California "America's technology capital," the magazine attributes the state's economic strength to the booming tech sector, "AI explosion" in particular, as tech companies are finally seeing significant revenue from their investments in artificial intelligence (AI).

The magazine also noted Texas, whose economy ranks second in size among U.S. states, has proven to be tough competition in recent years. With its business-friendly policies like loose regulatory oversight and low taxes, Texas has seen companies like Tesla and pharmaceutical giant McKesson move their headquarters to the state.

At the same time, New York, as the country's most populous city and the epicenter for banking and consulting firms, remains a formidable competitor, too, said the magazine.

Those Fortune 500 companies based in California include Apple, which ranks third on the list, followed by Alphabet which ranks eighth and Chevron which holds 15th place.

California is the fifth largest economy in the world for the seventh consecutive year, with a nominal GDP of nearly 3.9 trillion U.S. dollars in 2023 and a growth rate of 6.1 percent since the year prior, according to the California governor's office, citing the U.S. Bureau of Economic Analysis.