Bubble Watch: Regulators Sound Alarm as Nvidia Hits $5T

As investors cheered Nvidia’s historic $5.05 trillion valuation on Wednesday, regulators at the world’s top financial institutions were sounding the alarm. The Bank of England and the head of the IMF have both recently flagged the growing risk of an AI bubble, suggesting the tech stock surge could burst.
Nvidia is at the center of this concern. Its value has soared by $1 trillion in just three months, driven by AI hype. The company’s $100 billion investment in OpenAI, which will use the funds to buy Nvidia’s chips, is seen as a prime example of the “circular” deals fueling this bubble.
Furthermore, there is a “growing concern from analysts” that the massive corporate investments in AI are not paying off. Reports that “nearly all AI pilot programs in businesses fail” suggest the “ravenous appetite” for chips may be based on speculation, not a sustainable business case.
This contrasts with the market’s euphoria. The US stock market is at a record high, and Nvidia’s $500 billion order book and new deals with Uber and Nokia are being celebrated. President Trump, a shareholder, has also praised the company.
The question is who is right: the market or the regulators? As Nvidia’s value tops the GDP of major nations, the answer will have global consequences.