Shares of major tech companies have fallen in the US and Japan over fears about the valuations of firms linked to AI.

Nvidia is at the core of the AI revolution with its high-tech computer chips in high demand. They are the "brains" that power AI. AI will always need high-powered chips, so it may seem reasonable to think that Nvidia can weather the AI bubble popping. That's not likely.

With all the AI bubble headlines out there, it’s easy to conclude that the great bull run will end in tears and perhaps irrecoverable losses for those who’ve chased the hottest AI names in the market.

The $5 trillion valuation surpasses the total cryptocurrency market value and equals roughly half the size of the pan European Stoxx 600 equities index, Reuters notes. At current prices, Huang’s stake in Nvidia would be worth about $179.2 billion, making him the world’s eighth-richest person.

Nvidia Corporation's soaring valuation reflects high AI optimism, but risks loom. Click for my updated look at NVDA stock and where I see it headed.

A wave of trillion-dollar AI deals linking Nvidia, OpenAI, and hyperscalers has sparked debate over whether massive datacentre spending and “circular” chip-financing loops mark a sustainable boom—or t