Nvidia Surpasses India’s GDP Valuation Amid AI Boom and Strategic Shifts

Nvidia's market capitalization has soared to $4.33 trillion, eclipsing India's $4.19 trillion economy. This milestone coincides with India reporting a robust 7.8% GDP growth for Q2, though nominal GDP growth slowed to 8.8%. Key sectors like manufacturing (7.7%), services (9.3%), and construction (7.6%) showed strength, yet Nvidia’s valuation—driven by its dominance in AI hardware—now overshadows the output of the world’s fifth-largest economy.

The chipmaker’s decade-long pivot from gaming GPUs to AI infrastructure has made it indispensable to major AI platforms. Its recent $5 billion investment in Intel, following the U.S. government’s stake purchase in the latter, suggests geopolitical maneuvering under the TRUMP administration. The move raises questions about Nvidia’s autonomy amid growing regulatory pressures.