Nvidia has continued its historic climb, scaling a “wall of worry” to reach a $5.05 trillion valuation. This ascent comes despite dire warnings from the Bank of England and the IMF, creating a stark “boom vs. bust” showdown.
The “boom” is undeniable. A $1 trillion value surge in 90 days, a $500 billion backlog of orders, and a $100 billion partnership with OpenAI. These numbers suggest a company at the start of a long-term super-cycle, not the end of a bubble.
Further cementing its position, Nvidia has alliances with Uber, Nokia, and the US government, and enjoys the vocal support of President Trump.
And yet, the “wall of worry” is real and growing. The BofE and IMF aren’t casual skeptics; they are global financial stabilizers warning of an AI bubble. Their “bust” scenario is based on fundamental flaws in the market.
They see the $100 billion OpenAI deal as “circular” and point to a disturbing disconnect between spending and results. Analysts are reporting that “nearly all AI pilot programs in businesses fail.” Nvidia may be climbing, but the warnings suggest the foundation is crumbling beneath it.