Nvidia shines in headlines for more than a week for becoming the 4th largest company worldwide with $2 trillion market capitalization. It is more than twice the previous year's value and the AI chips of Nvidia is the sole reason behind this growth. The most amazing factor here is that Nvidia increased its stock price to $740 billion in one year. Not just that, its stocks came across a surge of 16%, and net income saw a surge of 769% (Oct-Dec).

Due to this massive development, Nvidia has received INR 1,699 crore Indian investment only from the mutual fund segment alone. The investors and the investments are as follows:

• Motilal Oswal Nasdaq 100 Exchange-Traded Fund (ETF) – Rs 326 crore
• Mirae Asset NYSE FANG+ ETF  – Rs 226 crore
• Kotak NASDAQ 100 FoF  – Rs 143 crore
• Motilal Oswal S&P 500 Index Fund  – Rs 113 crore
• Franklin India Feeder - Franklin US Opportunities Fund – Rs 200.5 crore
• Edelweiss US Technology Equity FoF – Rs 88.4 crore
• PGIM India Global Equity Opportunities Fund – Rs 81.7 crore

As per the reports, Axis Mutual Funds has an active investment in Nvidia in two different schemes:

• Axis Special Situations Fund (Rs 8.4 crore)
• Axis Growth Opportunities Fund (Rs 118.5 crore)

So, Nvidia unlocks almost a total of INR 1,699 crore exposure for the Indian Mutual Fund industry. As an impact of this huge investment, the investors are coming across a big push in their Net Asset Value (NAV).

Vested Finance (an overseas investment platform) shows Nvidia as the second most popular stock globally (comes right after Tesla) with a volume of $25 million for the last six months of trading.

Why Nvidia?

To sum up the reasons behind this emergence of Nvidia, here are a few points to note:

AI GPUs (graphics processing units) of Nvidia have come up at the right time – the boom of AI has pointed out the need for a technology like this.

The tech giants, too, have found AI to be very crucial to develop something significant in the present-day scenario. They have understood that staying in line with AI is the smartest and safest option to achieve optimum growth. Open AI, Google, etc., are all on the same page.

In order to pace up with AI, they have to process huge amounts of data; this is where Nvidia's AI chips come into play. Any complex technology that includes heavy data processing, for example, payment processing through payment gateway or natural language processing (NLP), Nvidia’s chips become the heart and soul of it.

As mentioned, almost all the big companies are attempting to develop AI chips with the same potential as Nvidia's; however, Nvidia has created a benchmark for chips. As companies like Google, Apple, Microsoft, etc., are yet to crack the technology for the chips, Nvidia gets the obvious advantage. Until competitors come up with alternatives to the chip, Nvidia will keep enjoying this advantage in the coming years.

Nvidia is stealing the show and getting investments from Indian companies for obvious reasons. It is undoubtedly ruling the industry. And with further betterment of the chip, it will get even more investments in the future.