Nvidia (NASDAQ: NVDA) has made history by becoming the first company in the world to reach a market capitalization of $4 trillion, a figure that now represents a sizable share of global GDP.
Specifically, data indicates that Nvidia’s market value accounts for 3.6% of global GDP when measured in U.S. dollars, according to Bloomberg Finance LP.
Remarkably, the chipmaker’s valuation now exceeds the combined stock market values of several major European economies.
The entire UK equity market accounts for just 3.2% of global GDP, while France accounts for 3.1%. Even Germany, Europe’s largest economy, trails at 2.8%.
At the same time, Nvidia’s market cap has now surpassed the total value of all publicly listed companies in Germany by 0.8 percentage points.
This comparison highlights the scale of Nvidia’s recent meteoric rise, fueled by demand for its products in powering the growing artificial intelligence (AI) technology.
Scale of Nvidia’s market cap surge
While Nvidia may rival entire nations in market value, it’s important to note that companies and countries serve fundamentally different roles. In this case, Nvidia doesn’t provide public goods or carry out the core functions of a government.
The rally has continued despite U.S. chip export restrictions to China and early concerns that emerging AI models, like DeepSeek, might reduce future hardware demand. Interestingly, Nvidia’s momentum has picked up in part as trade tensions between the U.S. and China have recently begun to ease.
Interestingly, a section of Wall Street expects the company’s market cap to more than double in the coming years. For instance, Beth Kindig, lead tech analyst at the I/O Fund, has predicted that the value could reach $10 trillion market cap by 2030.
Kindig sees continued growth driven by AI leadership, projecting nearly 19% annual returns through the end of the decade.
Featured image via Shutterstock
