NVIDIA Corp‘s NVDA market capitalization has surpassed the combined totals of Germany and Italy. The company’s stock has surged almost 200% this year, elevating its market cap to an impressive $3.5 trillion.

What Happened: Torsten Sløk, Chief Economist at Apollo, said, “Nvidia is now bigger than the total market cap of five of the G7 countries.” According to Sløk, this shift reflects a broader trend where foreign investors own approximately 18% of the U.S. stock market.

The implications of this phenomenon extend beyond Nvidia, affecting retirement allocations and investment strategies across the globe.

A chart from Apollo compares Nvidia’s market cap against the G7 countries: Japan’s market cap stands at $6.4 trillion, while Canada, the United Kingdom, France, Germany, and Italy have market caps of $3.3 trillion, $3.2 trillion, $3.1 trillion, $2.5 trillion, and $0.8 trillion, respectively.

Jason Zweig, a columnist for The Wall Street Journal, observed that “Nvidia now has a greater market value than the entire German stock market and the entire Italian stock market.”

The combined market cap of Germany and Italy, totaling approximately $3.3 trillion, falls short of Nvidia’s market cap.

The Group of Seven is an intergovernmental forum that includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union as a non-enumerated member. These nations are recognized as some of the world’s major advanced economies, organized around shared values of democracy and market liberalization.

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Why It Matters: This significant surge in Nvidia’s market cap comes on the heels of the company’s strategic moves to expand its global footprint. Nvidia has been actively pursuing growth in India and Thailand, aiming to develop their domestic semiconductor supply chains.

This expansion aligns with the company’s focus on the artificial intelligence wave, as projected by Beth Kindig of I/O Fund to reach a $10 trillion valuation by 2025.

Furthermore, Nvidia’s stock has been on a remarkable trajectory, reaching an all-time high with over 236% returns in the past year. This exceptional performance has also translated into significant growth for ETFs associated with Nvidia, further demonstrating the company’s market influence.

Price Action: Nvidia stock closed at $140.41 on Thursday, up 0.61% for the day. In after-hours trading, the stock dipped 0.25%. Year to date, the stock has seen growth of 191.49%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.