Nvidia Hits $5T Market Cap as Bitcoin Now Trails U.S. Equities Year to Date
The Nvidia (NVDA)-led rally in stocks this month has now pushed the returns of the S&P 500 and the Nasdaq above that of bitcoin BTC$113,144.60.
With additional gains on Tuesday while bitcoin dipped, the S&P 500's 17% rise year-to-date is ahead of BTC's 16% advance. The Nasdaq has widened its lead over bitcoin, now higher by 24%. Gold continues to be the top-performing major asset class with a 50% rise.
No rally in U.S. stocks can be talked about with mentioning the Mag 7 names, and specifically within that group Nvidia (NVDA). Shares are up 17% over the past five days amid a continuing barrage of AI-related partnership deals, pushing the company's market cap above $5 trillion early Wednesday.
Microsoft (MSFT) and Apple (APPL) remain just behind NVIDIA, each valued at around a $4 trillion market cap.
According to the X account Hedgie Markets, NVIDIA is responsible for nearly 20% of the S&P 500's gains this year and now accounts for 8.3% of the index's total weighting.
To put Nvidia's size in perspective, the company's market cap is now larger than the combined values of AMD, Arm Holdings, ASML, Broadcom, Intel, Lam Research, Micron, Qualcomm, and Taiwan Semi, according to Dow Jones Market Data.
Nvidia's growth has coincided with the huge developments in artificial intelligence. On Tuesday alone, the company announced a series of new partnerships with Palantir (PLTR) and Samsung, a $1 billion investment in Nokia, and a potential collaboration with the U.S. Department of Energy to build new supercomputers.
It's more of the same in opening action on Wednesday, with the Nasdaq higher by 0.5%, Nvidia up 4.6% and bitcoin slipping back under $113,000, roughly 10% below its record high.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
