The debate over Nvidia’s valuation has officially left Wall Street and entered the global stage. By surpassing $5.05 trillion, the chipmaker’s value now eclipses the GDP of major nations, sparking a high-stakes controversy about a potential “boom or bust.”
The sheer size of this valuation is forcing a global conversation. The “boom” proponents argue this is justified. They see Nvidia as the foundational company of an AI-driven age. Their evidence includes $1 trillion in growth in three months, a $500 billion order backlog, and massive deals with OpenAI, Uber, and Nokia.
In this view, Nvidia isn’t just a company; it’s the infrastructure for a new global economy, and its valuation rightly reflects that. President Trump’s vocal support adds to this narrative.
However, the “bust” argument is now a matter of global economic stability. The Bank of England and the IMF have issued formal warnings, fearing a bubble this large could trigger a global financial crisis if it bursts.
Skeptics point to the shaky ground beneath the valuation. The $100 billion OpenAI deal is called “circular,” and analysts warn that “nearly all AI pilot programs in businesses fail.” This suggests the $5T valuation is built on speculative demand, not real economic output, making it a dangerous global risk.