Nvidia’s wild rise has made it the king of mega-cap stocks, putting it above the entire stock market capitalization of some of the world’s largest economies. On Tuesday, Nvidia’s market capitalization topped $3.3 trillion, surpassing Microsoft as the largest U.S. stock, but its market capitalization already exceeds the cumulative value of the entire stock markets of Germany, France and the United Kingdom (measured individually) and in dollar terms. Deutsche Bank noted this in its Chart of the Day. Only India, Japan, China and the United States have stock markets larger than Nvidia, Deutsche Bank said. Nvidia has become the main way for investors to bet on the rise of artificial intelligence. Large-scale language models launched last year, including OpenAI, rely on high-end semiconductors to operate effectively. Nvidia is considered well ahead of its peers in the chip race. While semiconductors have traditionally been a cyclical business, the potential for long-term AI investments across the business community has Wall Street analysts predicting continued growth for Nvidia for years to come. The excitement shows no signs of abating. According to Deutsche Bank, Nvidia’s market capitalization has increased by $1 trillion in just 23 trading days since May 20, which is the fastest ever. For context, Warren Buffett’s Berkshire Hathaway’s total assets 135 years later are only about $900 billion. The rally also raised concerns that U.S. stocks are concentrated in a handful of technology stocks. According to Deutsche Bank, the market capitalization of Nvidia, Apple and Microsoft alone is close to $10 trillion, which was the market capitalization of the entire S&P 500 Index in 2010.
