16.3% of U.S. GDP! NVIDIA's Market Cap Accounts for 8% of S&P 500 Index, Exceeding Combined Value of Top 5 Constituents

Recent data shows that U.S. AI chip leader NVIDIA now represents around 8% of the total market capitalization of the S&P 500 index. This situation has been entirely fueled by the AI boom, with the chipmaker's market capitalization exceeding the combined market value of five out of the index's eleven sector groups.

According to the latest figures released by independent macro research newsletter Kobeissi Letter on X, NVIDIA's market cap has surpassed the combined market value of five major S&P 500 sectors: energy, utilities, real estate, consumer staples, and materials. NVIDIA's current market cap equates to 16.3% of U.S. GDP.

Since 2024, NVIDIA has repeatedly traded places with Apple for the title of world's most valuable company. NVIDIA's current market cap of $5.41 trillion still exceeds Apple's $4.74 trillion.

NVIDIA first surpassed Apple in June 2024 to become the world's most valuable company. After briefly losing the top spot, it reclaimed the lead from Microsoft last June and crossed the $5 trillion market cap threshold in October of that year.

Due to shifts in the tech market, Apple briefly regained the title of the world's most valuable company in July this year. However, NVIDIA's latest strong financial report pushed its market cap back to the top.

Last week, NVIDIA projected Q3 revenue of $108 billion, implying a revenue increase of approximately 1,730% over four years—an unprecedented growth rate for a company of this scale in modern history. NVIDIA's Q2 revenue reached $96.22 billion, exceeding Wall Street's expectation of $92.11 billion.

Simon Leopold, an analyst at U.S. investment bank Raymond James, forecasts that NVIDIA's sales could surpass $1 trillion by the 2029 fiscal year.