A critical question is being asked in boardrooms and government halls: Is the AI revolution just hype? This question is at the center of the debate over Nvidia’s $5.05 trillion valuation, as its soaring price clashes with the reality of failing AI pilot programs.
On the “boom” side, the numbers are staggering. Nvidia is worth $5.05 trillion. It grew by $1 trillion in three months. It has a $500 billion order book and a $100 billion deal with OpenAI. These facts suggest the revolution is very real.
This view is supported by partnerships with major entities like Uber, Nokia, and the US government, as well as by political figures like President Trump.
On the “bust” side, the argument is that this is all speculative. The IMF and Bank of England have issued formal bubble warnings. Their case is supported by a devastating analyst finding: “nearly all AI pilot programs in businesses fail.”
This suggests that while companies are spending billions on Nvidia’s chips (the “hype”), they are not getting a return on that investment (the “reality”). Skeptics also point to the “circular” nature of the OpenAI deal as further proof of a market detached from fundamentals.