Nvidia Corp. has witnessed an extraordinary surge in its share prices, propelling the company’s market value to surpass that of entire European country stock markets. According to Deutsche Bank Research, Nvidia even outperformed the equity market value of the United Kingdom in the past week.
The investor frenzy surrounding Nvidia’s stock (NVDA) has propelled the company to become the largest U.S. company, with a staggering market value of over $3.3 trillion as of Tuesday. This incredible achievement reinforces Nvidia’s position as a major player in the artificial intelligence chip industry.
“In less than a month Nvidia has soared past the market cap of every listed stock combined in first Germany and then in the last week both the UK and France,” said Jim Reid, global head of macro and thematic research at Deutsche Bank Research, in a note emailed Thursday.
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Nvidia’s market capitalization surged to $3 trillion, from $2 trillion, in 30 trading days from April 24, said Reid. “Nvidia has added a trillion dollars of market cap since May 20th,” he wrote. “At 23 trading days this is the quickest a company has ever added a trillion dollars.”
To help put this surge into perspective, Reid said that billionaire Warren Buffett’s Berkshire Hathaway, “one of the most respected companies in the world, has taken around 135 years since its origins in the 1880 to get from zero” to around $900 billion today.
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“Only India, Japan, China and the US itself have entire listed stocks that are collectively bigger” than Nvidia’s $3.35 trillion market value, according to Reid’s note.
Nvidia’s shares have soared 174% this year through Tuesday, according to FactSet data. The U.S. stock market was closed Wednesday for the Juneteenth holiday.
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“Exactly a decade ago the entire listed UK stock market was 400 times larger than Nvidia,” said Reid. “In the last week Nvidia overtook it.”
Several Big Tech companies have soared this year, led by Nvidia, as investors cheer AI. But some investors are worried about Big Tech’s outsized weighting in the top-heavy S&P 500.
Shares of Nvidia were up Thursday morning, rising a sharp 1.2% to exceed gains posted by broad U.S. stock benchmarks, according to FactSet data, at last check. The S&P 500 index SPX was up 0.2% Thursday morning, while the technology-heavy Nasdaq Composite COMP gained 0.1% and the blue-chip gauge Dow Jones Industrial Average DJIA rose 0.3%.
