Nvidia's Market Cap in the US Matches Entire Hong Kong Stock Market

Nvidia Riding the AI Growth Cycle
Hong Kong Stock Market Moving Backward

Thanks to the growth of the global artificial intelligence (AI) market, Nvidia's market capitalization has increased to a level comparable to the total value of Chinese companies listed on the Hong Kong stock exchange. The continued sluggishness of the Chinese stock market and the downward trend of the Hong Kong stock market have also had an impact.

According to Business Insider on the 10th (local time), Michael Hartnett, chief strategist at Bank of America (BofA), stated, "Over the past two months, Nvidia's value surged to $600 billion, increasing its market capitalization to $1.7 trillion, which is equivalent to the total market capitalization of all Chinese listed companies on the Hong Kong stock exchange."

Nvidia's market capitalization has nearly quadrupled since early last year. Its stock price closed at $721.33 on the 9th. It surged 239% in 2023 and has risen 41% this year alone. Nvidia ranks 5th in market capitalization on the U.S. Nasdaq market.

On the other hand, the Hong Kong stock market is showing weakness due to economic instability. Sluggish economic growth and a prolonged real estate collapse are weighing on the market, which is experiencing deflation. The Hang Seng Index, a benchmark for Chinese stocks listed in Hong Kong, fell 26% last year and has declined 8% so far this year.

Strategist Hartnett said, "For investors who can identify Chinese stocks with strong management, balance sheets, and robust earnings, there will be opportunities," adding, "Even during the collapse of Japan's Nikkei in the early 1990s, 15 companies with these conditions rebounded with a 400% bull market."

Nvidia, the world's largest semiconductor manufacturer by market capitalization, is estimated to have doubled its revenue last year thanks to investments from major clients such as Microsoft, Meta Platforms, Amazon.com, and Alphabet. Wall Street analysts predict that due to the surge in demand for Nvidia products, it could become the semiconductor industry's top revenue company as early as 2025.