Nvidia hits $5 trillion, investors cautious

Nvidia - Ảnh 1. — People walk outside the New York Stock Exchange headquarters on Wall Street - one of the "stages" witnessing the wave of investment in AI - Photo: Reuters

While business leaders are excited about the prospects of commercial AI, there are significant concerns not only around safety, but also about the wave of overinvestment in the field.

Nvidia shapes the AI industry

Analysts say the milestone marks Nvidia's rapid transformation from a niche graphics chip design company to the "backbone" of the global AI industry, turning CEO Jensen Huang into a Silicon Valley icon and making the company's advanced chip lines the focus of the US-China technology competition.

Nvidia shares have risen 12-fold since ChatGPT debuted in 2022, as AI hype pushed the S&P 500 to record highs. However, Nvidia reached the $5 trillion milestone just three months after surpassing the $4 trillion mark, showing that the company's value alone has surpassed the total market value of cryptocurrencies, according to Reuters.

"Nvidia reaching a $5 trillion market cap is not just a milestone, it's a statement. Nvidia has gone from being a chipmaker to shaping an entire industry," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Nvidia’s success comes from its monopoly in the production of GPUs – the processors that are considered the foundation for generative AI systems like ChatGPT, Gemini or Claude. Major corporations – from Microsoft, Google to Amazon – spend tens of billions of dollars to buy Nvidia chips, making the company “the backbone supplier of the AI economy ”.

According to the Financial Times, eight of the 10 largest stocks in the S&P 500 are now technology stocks. These eight companies account for 36% of the total value of the entire US market, 60% of the index's gain since the market bottomed in April, and nearly 80% of the S&P 500's net profit growth over the past year.

According to analysts from Nomura Financial Group (Japan), the 2.4% increase of the S&P 500 in the last 5 sessions up to October 29 was almost entirely influenced by three stocks: Alphabet, Broadcom and Nvidia.

US growth engine

In October 2025, leading researchers at the International Monetary Fund (IMF) said that the wave of investment in AI - which has become one of the largest capital flows in modern history - has helped the US avoid the risk of a sharp economic decline.

Observers say the dominance of the technology industry is not a new phenomenon, as corporations such as Apple, Microsoft and Meta have led the US market to grow since the global financial crisis more than 15 years ago. Not only the US, but other markets around the world also tend to concentrate on a few large companies, which generate the majority of profits for shareholders.

Some market observers believe that the technology group's continuous rise is also due to retail investors buying due to fear of missing out (FOMO).

As of now, concerns about the “AI bubble” seem to persist and become an important factor influencing investors’ decisions to invest. Therefore, it is not impossible that the recent growth of the market may encounter hesitation and shaken confidence from investors.

However, most investors believe that it is too early to discuss the risk level of an "AI bubble", because unlike the uncertain times of the market in the past, today's leading technology companies all have solid financial balance sheets to support their huge spending programs.

Based on several surveys, 60% of CEOs surveyed believe that the "AI fever" has not led to overinvestment, but the remaining 40% expressed deep concerns about the exciting direction of the AI market and believe that an upcoming correction is inevitable.

Christopher Gannatti, global head of research at WisdomTree, said that for now, tech companies are still able to demonstrate real benefits from AI to reassure Wall Street about their massive spending. However, "even a little bad news can be a cold shower for a boiling market," according to financial news site Investopedia.

In a report titled "AI: In A Bubble?", analyst Eric Sheridan from Goldman Sachs Investment Bank said that the current situation has some similarities with past bubbles such as soaring valuations of AI businesses and huge capital inflows, but the level of excitement in the capital market is still lower than in previous bubble peaks.

Confidence leads the market

According to some analysts, investors are pouring money into big tech companies, with the expectation that they will continue to reap huge profits from AI for years to come. In other words, the huge capitalization of these companies now depends largely on the belief that these businesses can maintain their long-term dominance in the market.

"There is a scenario where these leading companies continue to dominate for years to come," said Kathryn Kaminski, a strategist at investment firm AlphaSimplex, despite the possibility that new competitors will soon emerge and gradually take market share.

KHANH QUYNH

Source: https://tuoitre.vn/nvidia-dat-5-000-ti-usd-gioi-dau-tu-than-trong-20251102090129289.htm