Is Nvidia’s $5.05 Trillion Valuation Built on Sand?

Nvidia’s $5.05 trillion valuation is a monumental achievement, but a growing number of critics, including the IMF and Bank of England, are warning that this colossus may be built on sand. The “boom or bust” debate is now a question of substance versus speculation.
The “boom” argument is one of solid, tangible growth. The company’s value appreciated by $1 trillion in just three months. It holds a $500 billion order book and has secured a $100 billion deal with OpenAI. It is partnered with Uber, Nokia, and the US government, and supported by President Trump. These are not “maybe” numbers.
However, the “bust” argument points to the sand beneath this structure. The formal warnings from the BofE and IMF are not to be taken lightly. They see a classic speculative bubble, where prices are detached from underlying value.
The grains of sand are the “failed AI pilot programs.” Analysts are deeply concerned that “nearly all” business attempts to implement AI are failing to produce results or profits. This suggests the $500 billion order book may be built on speculative hope.
Skeptics also label the $100 billion OpenAI deal “circular,” further suggesting the foundation is unstable. As Nvidia’s value tops national GDPs, a collapse would be a global economic earthquake.