Nvidia’s $5.05 trillion valuation has become a global Rorschach test, with world leaders and financial institutions seeing completely different things. President Trump is cheering the “boom,” while the IMF and Bank of England are fearing the “bust.”
The “boom” perspective, championed by Trump, sees a story of American success. Nvidia’s $1 trillion growth in three months, its $500 billion order book, and its $100 billion OpenAI deal are signs of a new industrial revolution. Partnerships with Uber, Nokia, and the US government confirm its central role.
The “bust” perspective, held by the world’s top financial watchdogs, sees a dangerous bubble. The IMF and BofE have issued formal warnings, concerned about the speculation driving the AI market.
Their fears are rooted in a disconnect between spending and profit. Analysts warn that “nearly all AI pilot programs in businesses fail.” Skeptics also label the $100 billion OpenAI deal “circular.” This split in opinion has turned Nvidia’s valuation into a high-stakes geopolitical issue.
