Putting a number on the poster boy of the stock market

If you think about it then it is a completely staggering number. And as the world continues to embrace the AI-mangoing future, Nvidia is now a poster boy not only for that revolution but also for the stock market. After Trump’s liberation day, after its struggles in the first four months of this year, the share price has now doubled at the latest record height. NVIDIA is also sitting with 29% profit from year to year, beating S&P 500 comfortably with 7% profit.

And with around 36,000 employees, NVIDIA’s market value per employee market value is more than $ 110 million. It continues to talk to the sheer shape that has especially increased in the last two years.

Now, the market cap has a $ 4 trillion (it is $ 4.2 trillion to be accurate) a milestone number. But how much is really visible while looking at equity indices? This is an important thing about which investors need to be careful.

Given where it stands, it is no surprise that NVIDIA now holds the largest weightage on both S&P 500 and Nasdaq. It commands about 7.5% (in the second in the second in the second) and 14.2% (Microsoft also at 12.8%).

It was not long ago that things still had a three horse race between Nvidia, Microsoft and Apple. However, now it is beginning to be clear that Nvidia is going to pull a distance.

While S&P 500 and Nasdaq’s top-bearer components revolve around the Mag 7 shares, how is the shocking fare of NVidia while looking at the global indices?

Well, this is one that can make you a little surprised.

When MSCI looks at the All Country World Index (ACWI), NVIDIA also easily topped with record 4.73% weightage. This is followed by other Mag 7 companies such as Microsoft, Apple, Amazon and then meta. But outside Microsoft, all others have less than 4% weightage in the index.

But what is this about the part of Nvidia that makes it special?

First, some references about the index are required. MSCI ACWI covers large and middle-cap stocks in 23 DM and 24 EM countries. And with 2,528 components, it represents about 85% of global equity markets.

Therefore, the thing about NVDia’s part is that it has now put all the components of Japan together (4.65%). Japan is the third largest stock market in the world. And here it shows a clean chart how NVIDIA is also easily overtaken the stock market share of other major countries:

It is staggering with Nvidia’s contribution, which is now almost double France and Germany combined. An important opportunity will even be an understanding here.

Now, the US Stock conducts the most weightage on MSCI ACWI, which includes about two-thirds of index, which includes shares from Wall Street. But this is with the rise of Nvidia between the AI boom that continues to carry forward the boundaries and to reduce the importance of shares of other countries in the index.

Now the question may be whether Nvidia will maintain this surgeing run in the next years? A lot of this will depend on the development of AI and how the functionality affects our every day’s life. From things like productivity to impact on labor market and essential living, it is a question of how much the future is going to be integrated with the use of AI?

There is no doubt that it has been a revelation in the last few years. But like the Internet Boom in the 2000s, it will be a completely different ballgem when such features, access, and every day live every day. However, for now, NVIDIA thrives as a leader of space, if not a leader.