The AI Surge
Nvidia Corp is rapidly closing the gap with India's entire stock market value. This surge is fueled by the huge demand for its advanced AI chips.
Valuation Convergence
On March 31, Nvidia's valuation reached $4.24 trillion. This is just 3% less than India's total market value of $4.37 trillion. A year ago, Nvidia was worth less than half of India's market size, showing how dramatically it has grown.
Market Dynamics Contrasted
Meanwhile, India's market value has fallen sharply. It's down nearly 20% from its peak, a loss of over $1 trillion. This drop was made worse by heavy selling from overseas investors in March. Nvidia, however, was largely unaffected by geopolitical tensions at the time. Nvidia's highest valuation was $4.75 trillion in February, and it is now trading about 10% below that.
Global Index Dominance
Nvidia also holds a much larger share in global stock indexes compared to India. In the MSCI All Country World Index (ACWI), which tracks both developed and emerging markets, Nvidia makes up 4.4% of the index. This is more than three times India's share in the same index.