As Nvidia hits $2 trillion, billionaire Marc Rowan’s asset manager Apollo calls AI a ‘bubble’ worse than even the dotcom era

Key Points:

  • The top 10 companies in the S&P 500 are more overvalued than during the tech bubble in the mid-1990s.
  • Nvidia’s market cap saw the single biggest gain in history, raising concerns about overvaluation.
  • Nvidia’s business, fueled by demand for data center chips, has raised national security concerns and led to discussions about the future of programming.


Nvidia, the technology giant, reached a milestone by surpassing a $2 trillion market cap, propelling artificial intelligence (AI) stocks into the spotlight. However, Apollo Global Management, led by Marc Rowan, expressed concern over the current market valuations, highlighting similarities to the tech bubble of the 1990s.


The chief economist at Rowan’s firm warned that the top companies in the S&P 500 are currently more overvalued than during the 90s tech bubble. This cautionary stance follows Nvidia’s historic market cap increase of $277 billion in a single day, surpassing records previously set by other leading companies like Meta.


Nvidia’s success is driven by the soaring demand for its data center chips that power advanced AI technologies, such as OpenAI’s Sora, enabling the creation of photorealistic videos from text prompts. The overwhelming orders for Nvidia’s AI chips have prompted CEO Jensen Huang to strategize fair distribution while competitors like Microsoft and Tesla are exploring their own chip ventures.


As Nvidia’s influence extends to national security, with the U.S. limiting chip exports to China, Jensen Huang envisions a future where coding becomes obsolete with the prevalence of AI systems. This perspective was shared at a recent summit, emphasizing the transformative power of AI in transforming society.


Interestingly, notable investor Cathie Wood of ARK Invest has reduced positions in the AI semiconductor sector, including selling shares in Nvidia and Taiwan Semiconductor Manufacturing Co. for the first time in years. Wood foresees increasing competition in the AI market impacting Nvidia’s margins, echoing concerns about the high expectations facing tech companies amidst a relentless equity market rally.



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