The world has placed a $5.05 trillion bet on Nvidia. As the chipmaker crossed this historic valuation, it sparked a global debate: is this a savvy investment in the next industrial revolution, or the largest speculative gamble in history?
The case for a “boom” is compelling. The company’s valuation expanded by $1 trillion in just 90 days. It’s sitting on a $500 billion order backlog, demonstrating massive demand. It has forged a $100 billion alliance with OpenAI and has partners in Uber, Nokia, and the US government.
This evidence suggests Nvidia is the indispensable architect of an AI-powered future. President Trump has also lent his support, bolstering the bull case.
On the other side, the “bust” argument is gaining traction, with heavy hitters like the Bank of England and the IMF issuing formal warnings of an AI bubble. They fear the market is detached from fundamental value.
Skeptics point to two major cracks in the foundation. First, the $100 billion OpenAI deal is viewed as “circular” by some, a way to inflate value rather than prove it. Second, and more critically, analysts report a high failure rate for corporate AI pilot programs. If businesses can’t make AI profitable, the entire $5 trillion valuation rests on sand.
