Thursday, July 18

Nvidia Surpasses Entire European Stock Markets Value

The surging shares of Nvidia Corp. have propelled the U.S. company to a staggering market value surpassing the combined stock markets of entire European countries, as reported by Deutsche Bank Research. Investor fervor for Nvidia’s (NVDA) stock has catapulted the artificial-intelligence chip maker to the top spot among U.S. companies on Tuesday, with a market value exceeding $3.3 trillion. Jim Reid, global head of macro and thematic research at Deutsche Bank Research, highlighted that in less than a month, Nvidia’s market cap surpassed the total of all listed stocks in Germany, the UK, and France.

Reid noted that Nvidia’s market capitalization surged from 2 trillion to 3 trillion in just 30 trading days starting from April 24, with an additional trillion dollars added since May 20th. This rapid growth marks the quickest ascent to a trillion-dollar market cap by any company in just 23 trading days. To provide context, Reid compared Nvidia’s meteoric rise to Warren Buffett’s Berkshire Hathaway, which took approximately 135 years to reach around $900 billion from its inception in the 1880s.

Remarkably, only India, Japan, China, and the U.S. itself boast entire listed stocks collectively larger than Nvidia’s market value of $3.35 trillion, according to Reid. FactSet data reveals that Nvidia’s shares have surged by 174% this year through Tuesday, with the U.S. stock market closed on Wednesday for the Juneteenth holiday. Reid highlighted the remarkable shift in market dynamics, noting that a decade ago, the entire listed UK stock market was 400 times larger than Nvidia before being overtaken in the past week.

While several Big Tech companies, particularly Nvidia, have experienced significant growth this year amid investor excitement over AI, concerns linger regarding the outsized influence of Big Tech on the top-heavy S&P 500 index.