Listed in 1999, Nvidia had been valued around $1 billion, when it was listed. It soared 4,000 times or 4,00,000 per cent from those levels to hit $4 trillion market capitalization. It took nearly 19 years to reach the $100 billion mark, while to soared another 1,000 per cent in just 4 years from then to join the $1 trillion mcap club. Another 2 years down the line, mcap quadrupled.
The move up on Nvidia is a great example of how sentiment can lead price over fundamentals. Traders who believed Nvidia to be overvalued and were waiting for the ‘fair value’ have probably missed the move, said Ross Maxwell, Global Strategy Lead at VT Markets. Whilst those trading momentum and structure have benefited, he said.
When We hit big milestones, we can often see profit taking coming in, which means we can expect some short-term volatility across the tech sector, especially as we are in earnings season as well, Maxwell adds.
Nvidia’s total market capitalization is matching India’s GDP forecast of $4.2 trillion by the IMF, which is currently the fifth largest economy in the world. Nvidia’s mcap has already surpassed the GDPs of France, the UK, Italy, Brazil, Canada and South Korea. In terms of stock market capitalization, Nvidia has topped countries like Germany, France and Canada, while India’s total listed mcap is close to $5.35 trillion mark.
Nvidia’s ascension to the world’s most valuable company stems from converging forces: explosive AI demand and unmatched strategic positioning. This demand surge coincided with Nvidia’s decade-long investment in specialized AI architectures. The company’s GPUs became indispensable infrastructure as AI adoption accelerated across sectors, said Viram Shah, Founder & CEO at Vested Finance.
“Market dynamics further amplified Nvidia’s advantage. Growing AI workloads require exponentially more computational power, creating insatiable demand for high-performance chips. Major cloud providers and enterprises now allocate billions for AI infrastructure, with Nvidia capturing the lion’s share through technological superiority and supply chain execution,” he said.
The AI boom, especially around generative AI models (like large language models, image generation, and other deep learning applications), triggered a sharp rise in demand for Nvidia’s GPUs. The global stock market continued to remain bullish on AI-themed stocks in 2023, with Nvidia being seen as the poster boy of the AI revolution globally.
Nvidia’s high-performance GPUs, including its flagship H100 and upcoming B100 series, now power around 80 per cent of the global AI chip market, with major tech giants like OpenAI, Microsoft, Google, and Amazon driving demand, said Ranjit Jha, Founder & CEO at Rurash Financials.
“Soaring data center revenues, gross margins above 70 per cent, and strategic supply chain ties with key partners like TSMC have further cemented Nvidia’s dominance. As AI continues to reshape industries, automate tasks, and fuel new waves of innovation, Nvidia’s historic valuation stands as a testament to its central role in this technological transformation,” it said.