Out of proportion ?

The combined market capitalization of all German listed companies now stands at 3 trillion USD — almost a third below Nvidia’s 4.3 trillion USD.

At ECP, we believe in US exceptionalism, the AI revolution, and Nvidia’s unique positioning as its prime beneficiary. Trading at 31x forward earnings, with consensus expectations of 39% annual EPS growth over the next five years, part of its valuation can be justified — provided such growth rates can truly be sustained by a company of this size.

Yet, as Europeans and close neighbours of Germany, we also believe in the qualities of the German economy despite its challenges. We therefore remain convinced that German companies should not be overlooked. Within this market, we continue to find compelling opportunities and have German investments in our portfolios.

The comparison inevitably raises the question: have things gone out of proportion?