Nvidia is the central bank of AI. But will its loans prove sound? - AFR

Nvidia, a global leader in AI computing power, has seen its market valuation surge from $1 trillion to over $5.4 trillion in just a few years, becoming the world's most valuable company. However, its ... Read original →

Nvidia’s meteoric rise is fueled not only by AI computing innovation but also by financial engineering tactics that resemble 1990s telecom expansion models. This approach accelerates data center adoption, driving upstream semiconductor and memory demand, yet raises systemic risk. If global AI demand cools, its massive guarantees and receivables could trigger significant losses. Competitors like AMD and Intel are aggressively developing AI chips to counter Nvidia’s dominance. In the next 12–24 months, regulatory tightening or market uncertainty may severely pressure Nvidia’s valuation, with the sustainability of its financial strategy under scrutiny.