Nvidia's Market Cap Nears $2 Trillion Amid AI Boom, Sparking Debate on Sustainability

As Nvidia dominates the AI chip market, investors question whether the current tech stock surge is a revolution or a bubble.

Nvidia's stock has surged by almost 3.3x over the past 12 months, reaching a market cap near $2 trillion, driven by its dominance in the AI chip market.
Investors and analysts are debating whether the AI boom represents a genuine revolution or a market bubble, with concerns about overvaluation amid soaring tech stock prices.
Nvidia reported a 265% year-over-year revenue growth for Q4 FY’24, with net income surging to $12.3 billion, highlighting the company's strong financial performance.
The AI sector's rapid growth has led to increased investment and interest from large companies and investors, though some caution about potential overhype and the need for diversification.
Risks for Nvidia include potential easing of GPU demand, increasing competition, geopolitical tensions, and reliance on Taiwan-based TSMC for GPU supply.