The $5 Trillion Hype Machine? Nvidia’s Rise vs. Reality

Nvidia’s $5.05 trillion valuation, a historic first, is at the center of a fierce debate between market hype and economic reality. The chipmaker’s rapid ascent is being fueled by an AI craze, but regulators and analysts are warning of a dangerous disconnect.
On one hand, the hype is powerful. The company’s value grew by $1 trillion in three months. It has a $500 billion order book, a $100 billion deal with OpenAI, and partnerships with Uber and Nokia. It also has the backing of President Donald Trump.
On the other hand, the reality is concerning. The Bank of England and the IMF have warned of an AI bubble. Analysts are flagging that “nearly all AI pilot programs in businesses fail” and that companies are “failing to secure revenue returns” on their massive AI investments.
The “circular” nature of the OpenAI deal, where Nvidia’s investment funds the purchase of its own chips, is a key concern for skeptics.
This AI boom is being called the next iPhone-level shift. But unlike the iPhone’s tangible sales, the AI boom’s profitability is still largely unproven, leading to fears that Nvidia’s $5 trillion valuation is a house of cards.