Nvidia loses a cool $500B as market questions AI boom

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Cisco was briefly the world's most valuable company too, you know, just before the dot com bust

Nvidia has rapidly lost about $500 billion off its market capitalization amid concerns that the GPU maker may have become overvalued or that the AI market powered by its chips is a bubble set to burst.of $3.335 trillion, shortly after leapfrogging Apple. Now Nvidia is back down in third place again after losing about 15 percent of its peak value in a matter of days.

"It could also be a 15-year window if it takes a large confluence of engineering factors and risk and new thinking to close the gap or change the problem altogether. Place your bets," he concluded., Nvidia's continued success is tied to an assumption that all of this huge investment in AI is going to pay dividends somewhere down the line, and some are starting to have doubts about how long it will take and whether the payoff will be worth it.

"With almost a quarter of all venture funding now flowing toward AI startups, I see the signs of some of investing's darker days: a thin understanding of the core technology, the massive cash burn of the startups, poorly defined business models and sky-high valuations.

 

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