Nvidia has reached a $5.05 trillion moment of truth. After crossing the historic valuation on Wednesday, the chipmaker is at the absolute center of a global “boom or bust” debate that has divided investors, regulators, and economists.
The “boom” argument is one of unstoppable momentum. The company added $1 trillion in value in just three months. It is supported by a $500 billion order book and a $100 billion deal with AI-leader OpenAI. Partnerships with Uber, Nokia, and the US government, plus support from President Trump, complete the picture of a generational company.
The “bust” argument, however, is one of systemic risk. The Bank of England and the IMF, two of the world’s most powerful financial institutions, have issued formal warnings about an AI bubble.
They see a market dangerously detached from reality. Skeptics point to the “circular” $100 billion OpenAI deal as evidence of inflation. More importantly, they highlight a major disconnect: analysts are concerned that “nearly all AI pilot programs in businesses fail,” suggesting the chip demand is speculative.