Geopolitical Economy Report AI bubble madness: Why Nvidia's market cap fell $600,000,000,000 in ONE DAY
Nov 22, 2025
Explore the wild world of AI-driven stock market bubbles, where Nvidia's shocking $600 billion drop raises critical questions. Delve into the Magnificent Seven tech stocks and their role in US GDP growth. Discover the circular financing trap that big tech, including the money-losing OpenAI, is caught in. With Nvidia's market volatility, customer concentration, and surging inventories, concerns about a financial house of cards grow. Finally, ponder the real risks of recession looming over this irrational market.
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Circular Financing Masks Losses
- Ben Norton highlights a circular financing scheme where big tech firms invest in each other to mask losses.
- He uses OpenAI as a case showing companies buy chips while not being profitable.
OpenAI's Losses Threaten Chip Demand
- OpenAI reportedly lost $12 billion in one quarter and owes $1.4 trillion in commitments.
- These liabilities suggest customer demand for NVIDIA chips may be unsustainable.
NVIDIA: Profitable Outlier In AI Boom
- NVIDIA appears to be the principal profitable beneficiary of AI via GPU sales.
- Its earnings report triggered extreme investor reactions and media praise despite deeper risks.