Nvidia’s surge past the $5.05 trillion mark has investors and economists asking a chilling question: Is this the dot-com bubble 2.0? The parallels are fueling a fierce “boom or bust” debate, with global institutions sounding the alarm.
The “boom” case argues this time is different. Unlike the dot-com era, Nvidia has real products and massive orders—a $500 billion backlog, to be precise. Its $1 trillion growth in three months is backed by a $100 billion deal with OpenAI and partnerships with Uber, Nokia, and the US government.
Proponents, including President Trump, argue this isn’t speculation; it’s the foundation of a new economy.
However, the “bust” argument, championed by the IMF and Bank of England, sees the same speculative frenzy. Both institutions have issued formal warnings about an AI bubble.
The parallels are compelling: massive spending with little to no profit. Analysts warn that “nearly all AI pilot programs in businesses fail,” echoing the dot-com era’s “clicks over cash” mentality. The $100 billion OpenAI deal is even being called “circular” by critics, a sign of a market high on its own supply.