Nvidia Corp.‘s (NASDAQ:NVDA) total market capitalization reached $5.4 trillion on Sept. 25, surpassing the combined $3.5 trillion value of the entire Russell 2000 index. Charlie Bilello of Creative Planning shared data on the discrepancy, comparing the technology company’s individual valuation to the collective benchmark.
A $2 Trillion Valuation Gap
In a post published on Sept. 28, Bilello shared a chart using YCharts data to illustrate the divide between the single technology entity and the small-cap index.
Bilello noted that Nvidia’s market cap is “nearly $2 trillion higher than all of the companies in the Russell 2000 combined.”
The provided chart displays Nvidia’s market capitalization represented by a blue bar at $5.4 trillion next to the Russell 2000 Index in a red bar at $3.5 trillion.
Profitability Explains Valuation
Addressing the stark contrast in value, Bilello explained the fundamental earnings differences driving the numbers. “That seems crazy until you learn that Nvidia made a profit of $193 billion over the last year while the Russell 2000 members collectively lost $13 billion,” Bilello wrote.
Nvidia Tops Global Markets
According to Companies by Marketcap, Nvidia’s $5.434 trillion valuation secures its rank as the number one largest company by market cap out of 11,341 tracked companies globally. As of Sept. 25, the total market cap for all 11,341 companies was $153.537 trillion.
The top five companies are rounded out by Apple Inc. (NASDAQ:AAPL) at $4.977 trillion, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) at $4.171 trillion, Microsoft Corp. (NASDAQ:MSFT) at $3.832 trillion, and Amazon.com Inc. (NASDAQ:AMZN) at $2.693 trillion.
Following Amazon are Taiwan-based Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) with a $2.337 trillion market cap, Space Exploration Technologies Corp. (NASDAQ:SPCX) at $1.959 trillion, Meta Platforms Inc. (NASDAQ:META) at $1.914 trillion, and Broadcom Inc. (NASDAQ:AVGO) at $1.684 trillion.
Among the top nine largest companies by market capitalization, all are headquartered in the United States, with the exception of TSMC.
How Has NVDA Performed in 2026?
Price Action: At the last check, the NVDA stock was trading 0.28% lower in premarket trading on Monday. It was up 26.66% over the last year, 20.68% year-to-date, and 5.64% over the last month. The stock closed 0.22% higher at $225.07 on Friday.
Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the short, medium and long terms, with a poor value score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Mehaniq on Shutterstock.com
Login to comment