Saad Ullah
The global investment world just hit a major milestone: Nvidia (NVDA) market weight in the MSCI All Country World Index has overtaken Japan, the world's third-largest economy. This shift shows how one company's explosive growth can reshape a benchmark representing nearly 85% of global equities.
Nvidia Surpasses an Entire Nation
According to trader The Kobeissi Letter, Nvidia’s rapid rise has reshaped global market dynamics, highlighting its massive influence across international equity indices.
The company now holds a larger share of the world’s total stock market capitalization than some of the biggest national economies.
- Nvidia: 5.04% of the ACWI
- Japan: 4.78%
- China: 3.33%
- United Kingdom: 3.23%
- Canada: 2.92%
Even France (2.37%) and Germany (2.15%) combined don't match Nvidia's influence. This reflects both Nvidia's leadership in the AI revolution and the relative sluggishness of major economies within global equity benchmarks.
What the Chart Shows
The data paints a striking picture of Nvidia's rise since late 2023. The company's weight climbed from under 3% in 2023 to over 5% by 2025, consistently outrunning national equity markets. Nvidia first overtook the UK, Canada, and China before eclipsing Japan in early 2025 - a pivotal turning point. Meanwhile, Japan's share has gradually declined, and other countries' weights have stayed flat or dropped slightly, making Nvidia's surge even more dramatic. The numbers confirm this isn't just a tech sector story - it's a global equity phenomenon.
Why Nvidia Is Dominating
Several forces are driving this unprecedented shift. Nvidia leads the world in high-performance chips powering artificial intelligence adoption. The company continues posting record revenues from AI infrastructure that routinely exceed expectations. Global investors are pouring money into U.S. megacap tech stocks as traditional economies face weaker growth. And with few companies offering direct exposure to AI infrastructure, Nvidia has become the default choice for those wanting a piece of the action.
What This Means for Investors
Nvidia's massive weight in the ACWI creates both opportunities and concerns. Global index funds now lean heavily on Nvidia's performance, meaning passive investors are getting significant exposure whether they realize it or not. A single stock now carries more influence than major economies, which raises real questions about diversification. The balance of global equities is shifting decisively toward U.S. technology giants, and this structural change looks like it's here to stay.
Saad Ullah
