Nvidia’s march toward a $5 trillion market valuation has become the defining symbol of AI’s dominance in global markets.
However, according to deVere Group CEO Nigel Green, it is also a reminder that investor enthusiasm may be outpacing financial fundamentals.
“AI is transforming the global economy and remains the single most powerful force shaping the future,” said Green.
“But valuations are expanding faster than earnings. The technology is real, the transformation is real, but the profitability still has to prove itself.”
Nvidia’s staggering growth – with revenues more than doubling over the past year and quarterly sales exceeding $44 billion, largely from its data-centre business – reflects the high demand for chips powering AI systems across industries.
Yet Green, who leads the now-Dubai-based FinTech, has warned that much of this momentum is “built on anticipation more than profit”.
“These numbers reflect breathtaking momentum, but they also expose the imbalance between demand for capacity and evidence of sustainable earnings,” he explained.
“We’re still waiting to see where the profitability lands once the AI ecosystem matures.”
He described the Jensen Huang-led firm’s surge as a sign of “the sheer weight of belief in AI’s potential to reshape productivity and growth”, but said that the current market dynamic is “built on expectation layered on expectation”.
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Green added: “The ecosystem is effectively trading with itself – chipmakers selling to hyperscalers, software firms selling to one another – creating a loop that looks like growth but hasn’t yet generated the profits to justify these numbers.
“The internet, clean energy, and mobile computing all went through periods where capital flooded in faster than profits arrived.
“Then, when the commercial models caught up, they reshaped the global economy. AI will follow a similar pattern – but this time, the sums involved are far larger.
“The concentration is driving markets higher, but it also makes them fragile.
“A sustainable AI economy will depend on broader profitability across the ecosystem, not just on a few extraordinary valuations.”
Despite his warning, Green insisted that AI remains essential for long-term investors.
He concluded: “This is not about retreating from the sector. It’s about investing with intelligence.
“The winners will be those using AI to create measurable productivity – in energy, logistics, healthcare, and finance – not just those building the infrastructure.”
“The coming profit check is healthy. It will clarify who’s delivering real value and who’s still trading on expectation. When that correction comes, it won’t kill the AI story – it will confirm it.
“Nvidia’s climb toward $5tn exposes the gap between belief and proof in the AI boom. The tech is unstoppable, but the valuations are unsustainable without profit to back them.
“This is the moment for investors to stay engaged, stay selective, and focus on where AI’s promise turns into performance.”