From around half a dollar share price to $215, the steep rise of Nvidia in the equity market over the past 11 years showed the massive global investor appetite for artificial intelligence-driven businesses. With the ongoing rally in the share price of Nvidia, the company’s market capitalisation has surged to an $5.23 trillion in May 2026, making it more valuable than the combined market valuation of over BSE-listed firms which together stand at nearly $5 trillion.
Why is Nvidia shares on rise?
Founded in 1993, Nvidia started as a graphics chip maker focused on gaming. Over the years, however, the company transformed itself into the backbone of the global AI revolution. Today, its high-performance graphics processing units (GPUs) power some of the world’s most advanced artificial intelligence models, cloud computing infrastructure, autonomous systems and data centres.
The company’s extraordinary valuation reflects the growing importance of AI in the global economy. Tech giants, enterprises and governments worldwide are investing aggressively in AI infrastructure and Nvidia has emerged as one of the biggest beneficiaries of this spending cycle. Its chips are widely used for training and deploying generative AI models, making the company a critical supplier in the rapidly expanding AI ecosystem.
The comparison with India’s stock market highlights the sheer scale of Nvidia’s rise. The combined valuation of more than 5,000 companies listed on the BSE, spanning sectors such as banking, manufacturing, energy, infrastructure, consumer goods and technology, is now lower than the valuation of a single AI-focused company in the United States. Market capitalisation of India’s largest IT major Tata Consultancy Services stands at Rs 8.66 lakh crore ($91.6 billion) at present.
Nvidia’s dominance showcases how capital markets are increasingly rewarding companies that control critical AI infrastructure and semiconductor technology. The surge also signals a broader global shift where artificial intelligence is becoming central to business operations, economic growth and future technological innovation.
As AI adoption accelerates across industries, Nvidia’s rise is being viewed not just as a corporate success story, but as a reflection of how deeply artificial intelligence is reshaping the global economy and investment landscape.
