In a stunning display of market dominance, NVIDIA Corporation (NVDA) has achieved a remarkable milestone: its market capitalization has surpassed the combined totals of Germany and Italy. This achievement comes as the company’s stock has soared nearly 200% this year, pushing its market cap to an impressive $3.5 trillion.
Torsten Sløk, Chief Economist at Apollo, remarked, “Nvidia is now bigger than the total market cap of five of the G7 countries.” This statement highlights the extraordinary growth of NVIDIA and underscores a broader trend of increasing foreign investment in the US stock market. According to Sløk, foreign investors own approximately 18% of the US stock market, a phenomenon with implications extending far beyond NVIDIA, affecting retirement allocations and global investment strategies.
A chart from Apollo vividly illustrates this point, comparing NVIDIA’s market cap to those of G7 nations. Japan’s market cap stands at $6.4 trillion, while Canada, the United Kingdom, France, Germany, and Italy have market caps of $3.3 trillion, $3.2 trillion, $3.1 trillion, $2.5 trillion, and $0.8 trillion, respectively.
Jason Zweig, a columnist for The Wall Street Journal, aptly observed, “Nvidia now has a greater market value than the entire German stock market and the entire Italian stock market. Combined.” This statement encapsulates the sheer magnitude of NVIDIA’s market dominance, showcasing its impressive market capitalization.
This significant surge in NVIDIA’s market cap coincides with the company’s strategic moves to expand its global footprint. NVIDIA has been actively pursuing growth opportunities in India and Thailand, aiming to develop their domestic semiconductor supply chains. This expansion strategy aligns perfectly with NVIDIA’s focus on the burgeoning artificial intelligence (AI) wave, projected to reach a $10 trillion valuation by 2025 by Beth Kindig of I/O Fund.
NVIDIA’s stock has been on a remarkable trajectory, reaching an all-time high with over 236% returns in the past year. This exceptional performance has also translated into significant growth for ETFs associated with NVIDIA, further demonstrating the company’s market influence.
On Thursday, NVIDIA’s stock closed at $140.41, up 0.61% for the day. In after-hours trading, the stock dipped 0.25%. Year to date, the stock has seen growth of 191.49%, according to data from Benzinga Pro.
NVIDIA’s achievement is a testament to the company’s strategic vision and the rapidly expanding influence of AI. As NVIDIA continues to invest in global expansion and AI technologies, its market dominance is likely to grow even further, solidifying its position as a leading force in the technology sector.