NVIDIA's market cap surpasses India's entire equity market
What's the story
NVIDIA, a company once known for its gaming chips, has now surpassed the entire Indian equity market in terms of market capitalization. The tech giant's valuation now stands at $5.05 trillion, which is higher than the combined worth of all companies listed on Dalal Street at $5 trillion. The massive difference highlights how artificial intelligence (AI) has become a major growth driver on Wall Street.
Valuation growth
Valuation surge and stock price jump
NVIDIA's valuation has skyrocketed by nearly five times in the last three years, from $101 trillion in 2023. This meteoric rise can be attributed to its rapid evolution from a niche graphics-chip designer to a key player in the global AI industry, along with record-breaking earnings. During this period, NVIDIA's stock price has also witnessed an impressive jump from below $50 to $211.50, a staggering 323% increase.
Market control
NVIDIA's dominance in AI race
Harshal Dasani, Business Head at INVasset PMS, emphasized NVIDIA's dominance in the AI race. He said that every hyperscaler, sovereign cloud project, and enterprise looking to deploy large language models needs GPU clusters, and NVIDIA controls around 80% of that market. "When compute becomes the bottleneck for an entire technological shift, the supplier of that compute captures an outsized share of the value chain," he added.
Tech giants
Other tech giants crossing $1 trillion mark
Along with NVIDIA, other tech giants such as Amazon, Broadcom, TSMC, Meta, and Tesla have also crossed the coveted $1 trillion mark in market value. Samsung is the only other Asian company to have achieved this feat. The surge in valuations reflects strong investor confidence in continued AI spending despite concerns that they may be overheating.
Market decline
India's market cap decline and foreign investor selling
India's market cap has sharply declined from its peak of $5.7 trillion in 2024 to the current $5 trillion. This is largely due to relentless selling by foreign portfolio investors (FPIs). In 2025 alone, they sold Indian stocks worth $189.09 billion and another $221.68 billion on a year-to-date basis. Christopher Wood of Jefferies has often referred to India as a "reverse AI trade," especially when global investors are pouring money into AI-linked markets while India underperforms that rally.
Market position
Foreign investors indifferent toward Indian markets
Ruchir Sharma, Chairman of Rockefeller International and Founder & CIO of Breakout Capital, recently said that India looks devoid of any AI "play." He added this has made foreign investors "indifferent" toward Indian markets. Dasani echoed similar sentiments by saying India's absence from the trillion-dollar club is a function of where domestic tech sits in the value stack.