Nvidia market cap 2025: Nvidia (NVDA) has reached a market capitalization of $4.8 trillion today, marking a level of dominance rarely seen in US market history and the AI chipmaker now represents a record 8.5% of the S&P 500 index, as per a report.
Nvidia Now Bigger Than 240 S&P 500 Firms Combined
According to data highlighted by The Kobeissi Letter on social media X, Nvidia’s valuation now surpasses the combined market caps of the Materials, Real Estate, and Utilities sectors. The company is also larger than more than 240 of the S&P 500’s smallest members combined, underscoring its extraordinary rise amid the artificial intelligence boom.
Nvidia Surpasses Entire Stock Markets of 4 Major Countries
The Kobeissi Letter also highlighted that, “The stock is larger than the combined value of the entire stock market of Italy, UAE, Spain, and Netherlands,” adding that, “Nvidia is behind just the US, China, Germany, Japan, and India’s stock markets,” as quoted in the X post.
Shocking stat of the day:
Nvidia now reflects a record 8.5% of the S&P 500 and is now larger than 6 of the index’s 11 sectors.
It is now larger than the Materials, Real Estate, and Utilities sectors combined.
With a market cap of ~$5.1 trillion, Nvidia also surpasses the… pic.twitter.com/xl9epUcXqa
— The Kobeissi Letter (@KobeissiLetter) November 11, 2025
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Tom Lee: Nvidia’s Valuation Is Not a Bubble
While such an unprecedented scale has raised concerns of a potential bubble, Fundstrat’s Tom Lee believes Nvidia’s soaring value remains grounded in strong fundamentals, as per a Benzinga report. Speaking to CNBC, Lee defended the stock’s valuation, saying it’s “hardly a bubble” and that “the AI trade is still in really good shape fundamentally,” as quoted in the report.
Lee noted, “Nvidia still only trades at 29 times forward earnings,” adding, “I mean, it’s still cheaper than Costco Wholesale Corp. (NASDAQ:COST),” as quoted by Benzinga.
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AI Innovation and Spending Continue to Drive Nvidia’s Growth
He attributed the ongoing optimism around AI to continued innovation and sustained spending across the sector, saying, “We know there’s a lot of visibility for AI spending and we know there’s still innovation and gain of function taking place with the models,” as quoted in the report. He added, “So it to me it makes sense that there’s still a payoff coming,” as quoted by Benzinga.
Market Volatility Tied to Fund Manager Underperformance
The conversation comes amid broader market unease. Recent volatility has been linked to fears surrounding the valuations of major AI names such as Palantir Technologies (PLTR). Lee, however, dismissed those concerns, suggesting that the nervousness stems from “underperforming fund managers” struggling to keep up with the market’s rally, as per the report.
He highlighted that, while the S&P is up 80% over the past three years, only 21% of fund managers are beating that benchmark, reported Benzinga.
Tom Lee Predicts Year-End Rally Despite Market Jitters
Lee said, “They’d rather see the market fall so that it falls to their performance level,” and pointed out that he believes the market will follow seasonal patterns, leading to “a lot of chasing into year end” as managers are forced to buy into the rally, as quoted by Benzinga.
FAQs
How much of the S&P 500 does Nvidia represent now?
Nvidia accounts for 8.5% of the entire S&P 500 index, the highest ever for one stock.
Are analysts calling Nvidia a stock bubble?
Some are cautious, but Tom Lee says it’s not a bubble, citing strong earnings and fundamentals.