**Nvidia Is Now Officially Worth More Than India**
The U.S. chip giant Nvidia recently hit a staggering $4.33 trillion market capitalization, surpassing the entire economy of India, which stands at $4.19 trillion. This data is according to Yahoo Finance and the International Monetary Fund (IMF).
This milestone comes at a time when India posted a stronger-than-expected 7.8% GDP growth for the quarter ending in June. However, India’s nominal GDP growth rate, which is not adjusted for inflation, fell to 8.8%, down from 10.8% the previous quarter. Sector-wise, manufacturing grew by 7.7%, services rose by 9.3%, and construction increased by 7.6%. Despite this positive performance, a single company—Nvidia—is now more valuable on paper than India’s entire economy.
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### Nvidia’s Unprecedented Rise
Nvidia became the first company in history to cross the $4 trillion valuation mark, driven primarily by the explosion in artificial intelligence (AI). Over the past decade, Nvidia transitioned from being a gaming graphics chip maker to becoming the core supplier of AI hardware. Today, virtually every major AI platform, from chatbots to enterprise tools, runs on Nvidia chips.
This transformation was not accidental. It stemmed from years of dedicated product development and market leadership. But while Nvidia has been thriving, it faces growing interference from the U.S. government and political forces.
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### Trump Administration’s Influence on Nvidia
During former President Donald Trump’s recent state visit to the UK, Nvidia quietly announced a $5 billion investment into Intel. This move raised eyebrows, especially considering the U.S. government had just acquired a 10% stake in Intel a month earlier. The timing and circumstances strongly suggest political pressure rather than pure business decisions.
Intel’s stock had been on a long decline before bouncing 20% following the announcement. Nvidia, the leading chip company globally, is now effectively being pressed into supporting a weaker competitor backed by the government. This shift blurs the lines between business and politics.
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### Revenue Sharing and Export Restrictions
Adding to the complexity, Nvidia agreed over the summer to hand over 15% of its revenues from advanced chip sales in China directly to the U.S. government. This arrangement was part of the conditions for securing export licenses.
With this, Washington effectively became a silent partner in Nvidia’s business dealings in China. While the White House justified these measures as necessary for national security, no clear explanation was provided on how such revenue sharing actually protects security interests.
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### Manufacturing Shift: Moving Production to the U.S.
In another significant development, Nvidia announced in April plans to begin chip manufacturing on U.S. soil for the first time. Historically, almost all of its chip production took place in Taiwan. New fabrication plants (fabs) are already under construction in Texas and Arizona.
Once again, this move aligns perfectly with the U.S. government’s strategic objectives, though not necessarily Nvidia’s commercial interests. The company’s operations—from revenue generation to manufacturing and partnerships—are increasingly intertwined with government directives.
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### Nvidia: A Partially State-Directed Company?
From an external perspective, it appears that former President Trump has considerable influence over Nvidia’s strategic decisions. Whether it’s investing in Intel, sharing revenue from China sales, or relocating production facilities, these moves don’t seem to make commercial sense on their own.
Originally, Nvidia’s singular focus was to lead the AI hardware race — and it successfully did so. Much like how every PC once proudly ran “Intel Inside,” nearly every modern AI system now relies on Nvidia technology.
This market dominance has created trillions of dollars in value, enormous financial rewards for employees, and cemented years of U.S. technology leadership.
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