AI Frenzy or Bubble? Nvidia’s $5T Valuation Divides Experts

Nvidia’s historic $5.05 trillion valuation has become the dividing line between market bulls and bubble-watchers. The chipmaker, which crossed the $5 trillion mark on Wednesday, is at the epicenter of an AI frenzy that has top economic officials sounding the alarm.
The bulls’ case is strong. The company’s value grew by $1 trillion in three months. It has a $500 billion order book, a $100 billion partnership with OpenAI, and deals with Uber, Nokia, and the US government. President Trump, a shareholder, is also a vocal supporter.
The bears’ case is equally compelling. The Bank of England and the IMF have warned of an AI bubble, fearing a repeat of the dot-com crash. They point to the “circular” nature of the OpenAI deal, where Nvidia is funding its own customer.
Furthermore, the bears highlight the disconnect between investment and profit. Analysts are concerned that “nearly all AI pilot programs in businesses fail” and that companies are not seeing revenue returns from their AI spending.
As Nvidia’s value soars past the GDP of entire nations, the question is no longer if AI is a massive shift, but whether its economic value is real or a dangerous, self-perpetuating hype.