With one going up and the other down, Nvidia is now worth as much as the entire Chinese stock market, represented by the H shares of the Hong Kong stock market.
That's a point made by Michael Hartnett, Bank of America strategist, who also notes that the $600 billion market cap rise in Nvidia (NVDA) over just the last two months equals the entire market cap of Tesla (TSLA).
Hartnett was focusing more on China's woes than Nvidia's AI-inspired gains. He made a comparison between China's struggles now and Japan's in the 1990s.
He said as the Nikkei collapsed from 40,000 to 20,000 in the 1990s, there was a big 400% bull market for 15 stocks. Especially in a deflationary bear market, a small portfolio of what he called "best of breed" stocks, with strong management, balance sheets, and EPS growth, can be very profitable, he said.
As for the U.S. stock market, he said positioning is flipping from a tailwind to headwind, though he said the old market adage is, "tops are a process, lows are a moment." He said there's no stopping what he calls a bubble until the 10-year yields, adjusted for inflation, are above 2.5%. The 10-year TIPS rate is 1.91%.