Have Indian investors gained from Nvidia’s rise?

Indian mutual fund industry has ₹1,699 crore exposure to global chipmaker Nvidia, which became the world’s fourth largest company by market capitalization after its quarterly earnings beat analyst expectations.

The stock clocked one-day gains of 16% on Thursday, driven by optimism around artificial intelligence (AI), as Nvidia’s chips play a crucial role in developing AI models.

According to Fisdom estimates, Motilal Oswal MF had ₹439 crore exposure to Nvidia. Mirae Asset MF had ₹280 crore exposure, followed by Franklin India MF ( ₹280 crore), Axis MF ( ₹169 crore) and Kotak MF ( ₹143 crore).

At scheme level, Motilal Oswal Nasdaq 100 ETF had ₹326 crore (4.6% of portfolio) exposure to Nvidia. Mirae Asset NYSE FANG+ ETF had ₹226 crore exposure (12.1%). Franklin India Feeder-US Opportunities Fund had ₹200 crore (6% exposure) to Nvidia.

Direct stock investors have also been tracking Nvidia in recent months. According to international stock investing platform Vested, 20% of its users held investments in Nvidia. It is the sixth largest holding from the platform. In terms of volumes, it had the second highest volumes in last six months, to the tune of $25 million.

The volumes doubled month-on-month in February.

Nvidia’s current status

Nvidia hit $2 trillion in market valuation for the first time on Friday. The company has seen its market capitalization swell by $740 billion this year, which is the highest increase worldwide.

In US markets, Nvidia is the third-largest company, and only lags behind only Microsoft Corp and Apple Inc. It is ahead of tech giants such as Amazon and Alphabet.

Globally, it is the fourth-largest company in terms of market capitalization behind oil giant Saudi Aramco.

The chip designer's 2024 share surge has been crucial to the S&P 500's gains, contributing to more than a quarter of the stock index's rise this year. Nvidia dominates the market for graphics chips designed for complex computing tasks needed to power AI applications that companies are rushing to develop.

The sharp rally in Nvidia shares also triggered a rally in semiconductor-related stocks in India such as ASM Technologies and SPEL Semiconductors.