If there is one thing that is being discussed the most in the world right now, it is AI – Artificial Intelligence. This wave of AI has taken a company to such heights that now its valuation is more than the entire Indian stock market. We’re talking about NVIDIA—a company that was once thought of as just making gaming chips. Today, the same company has emerged as one of the biggest forces in the world of AI. NVIDIA’s market capitalization has increased to approximately $5.05 trillion. For comparison, the total valuation of the Indian stock market—often referred to as ‘Dalal Street’—is approximately $5 trillion. In other words, the valuation of NVIDIA alone is now higher than the entire Indian stock market. Just three years ago, this company was not that big; But, the increasing demand for AI has completely changed its fortunes.
NVIDIA dominates the GPU chip market
GPU chips are a very important part in the world of AI, and NVIDIA has a strong hold on this market. According to experts, NVIDIA’s share in the market for high-performance computing infrastructure needed to run AI models is about 80%. Be it big tech companies, cloud computing projects, or companies building AI models—almost everyone needs NVIDIA chips.
Share prices are skyrocketing
The effect of this rapid growth can be clearly seen in the performance of the company’s shares. A few years ago, NVIDIA’s stock price was less than $50; Which has now increased to beyond $211. This means that investors’ capital has increased manifold. Currently, a lot of money is being invested in AI companies on Wall Street, and NVIDIA is trying to take the lead in this race.
Other companies also benefit
NVIDIA is not the only beneficiary of this race to become the leader in the world of AI; In fact, companies like Alphabet (Google), Apple and Microsoft have also reached record high valuations. Apart from this, companies like Amazon, Meta, Tesla and Samsung Electronics have also benefited tremendously from this boom of AI.
Indian market valuation fell
But, on the other hand, the condition of the Indian market seems a bit dull. The total valuation of the Indian market had reached $5.7 trillion in 2024, which has now come down to around $5 trillion. The main reason for this recession is considered to be the continuous selling by foreign investors. Foreign funds are investing more capital in AI-related companies and markets, while India seems to be lagging behind in this race.
reverse ai trade
Market expert Christopher Wood has even said that India is a “reverse AI trade”. This means that while the rest of the world is betting on AI, India has failed to significantly benefit from this global wave. Foreign investors are becoming more attracted towards markets like America, Taiwan and South Korea. Rockefeller International Chairman Ruchir Sharma also believes that there is currently no big AI player in India that can attract global investors. He says Indian IT companies have historically worked on a service-based model; However, the global market now gives more importance to companies that are based on products and innovation. For this reason, even strong Indian IT companies like TCS and Infosys are not able to achieve the valuation that companies like Nvidia or Microsoft are currently getting.
Experts say the earnings of service-oriented companies are directly linked to the number of their employees, while companies making AI and technology products have the potential to expand quickly and extensively. The whole world is betting on AI, and capital is flowing precisely into areas where innovation is clearly visible. The biggest question for India now is whether it will be able to carve out a niche for itself in this new AI race, or will it simply stand on the sidelines and become a spectator.