Nvidia's Gains Have Made It Bigger Than Europe's Largest Stock Markets

By
Colin Laidley
Colin Laidley Headshot
Full Bio

Colin is an Associate Editor focused on tech and financial news. He has more than three years of experience editing, proofreading, and fact-checking content on current financial events and politics. He received his M.A. in journalism from The New School and his B.A. in history and political science from McGill University.

Learn about our editorial policies
Published June 20, 2024
11:58 AM EDT
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks during an event in Taipei, Taiwan, on Sunday, June 2, 2024.
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks during an event in Taipei, Taiwan, on Sunday, June 2, 2024.

Annabelle Chih / Bloomberg / Getty Images

Key Takeaways

  • Nvidia shares continued to rise on Thursday, extending the AI chipmaker's lead on Microsoft, which it overtook as the world’s most valuable company on Tuesday.
  • Nvidia's soaring market cap has, in recent weeks, come to exceed that of the entire German, French, and U.K. stock markets, respectively.
  • Bank of America analysts see the potential for near-term volatility as investors take profits, but expect the company's solid fundamentals and attractive valuation to support the stock long-term.

Nvidia (NVDA) shares continued to rise on Thursday, extending the AI chipmaker's lead on Microsoft (MSFT), which it overtook as the world’s most valuable company on Tuesday.

Nvidia’s rise in the ranks of the world’s largest companies has been meteoric to say the least. Its market value has already doubled this year, after tripling last year. It has added $1 trillion in market capitalization—more than Warren Buffett’s storied Berkshire Hathaway (BRK.B), in the 23 trading days since May 20, according to a Deutsche Bank note distributed Thursday morning.

And with a market capitalization of more than $3.4 trillion, Nvidia has in recent weeks become larger than the respective stock markets of Germany, France, and the U.K. The only countries with national stock markets worth more than Nvidia as of Thursday were India, Japan, China, and, of course, the U.S.

Stock chart comparing Nvidia's market capitalization to the market values of Germany, France, and the U.K.

Deutsche Bank

Given how quickly the stock has climbed, it’s reasonable to expect some profit-taking in the near term, Bank of America Securities analysts said in a note Thursday. Volatility could be short-lived, they wrote, however, because of the company’s solid fundamentals and relatively attractive valuation.

We’re still in the early phases of the AI hardware deployment, the analysts said, and Nvidia should benefit from solid demand as it rolls out its next-gen Blackwell system later this year. Plus, Nvidia currently trades at about 30x price-to-earnings in Bank of America's bull case—not that much higher than the entire S&P 500’s P/E ratio of 23.6 and in line with the Nasdaq 100’s ratio of 31.7.

Shares of Nvidia were up 1.5% at $137.58 in late-morning trading Thursday.

Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Deutsche Bank. “CoTD: One by One.”

  2. Bank of America Securities. “Fundamentals, valuation, opportunity solid despite stock’s steep climb.”

  3. Birinyi Associates via the Wall Street Journal. “P/Es & Yields on Major Indexes.”

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.