Nvidia was named in 1993 after the Latin word for envy. Sure enough, the American colossus inspires plenty of it. Insatiable global demand for its graphics-processing units (GPU<\/small>s), the chips that power artificial intelligence, has made Nvidia the world\u2019s most valuable company, worth $5.4trn. Next year it may also become the most profitable, generating $370bn in net income. By 2029 its sales could hit $1trn.<\/p>\n\n\n\n
Jensen Huang, Nvidia\u2019s boss, is truly the magician at the heart of the\u00a0AI<\/small>\u00a0boom. His firm\u2019s share price is 14 times what it was on ChatGPT\u2019<\/small>s release in late 2022. The ten biggest public companies championing\u00a0AI<\/small>\u00a0make up 40% of the value of the\u00a0S<\/small>&P<\/small>\u00a0500 index. Nvidia alone accounts for 8% and unlike, say, Apple or Tesla, which make smartphones and cars, it is almost solely a bet on\u00a0AI<\/small>. The company has produced about 15 cents of every dollar the American stock market has returned since 2023\u2014returns that have kept consumers spending despite rising interest rates, tariffs and a war with Iran.<\/p>\n\n\n\n
Yet many also see Mr Huang as a magician in a more worrying sense, fearing that he is an illusionist inflating a dangerous bubble. Through $1trn-worth of deals, Nvidia provides data-centre landlords and AI<\/small> labs with cash or guarantees so that they can buy its GPU<\/small>s. Some call it the \u201cbank of AI<\/small>\u201d. At the very least, Nvidia\u2019s critics say, its financial engineering smacks of the \u201cvendor financing\u201d which pumped up the revenues of networking-gear makers like Cisco in the dotcom mania of 2000-01, whose collapse brought about a recession.<\/p>\n\n\n\n
Look more closely, however, and the worries are mostly unjustified. If Nvidia\u2019s bets on ai<\/small> come good, they could accelerate the technology\u2019s adoption, boosting productivity and living standards. If they misfire, the cost will fall chiefly on Nvidia\u2019s shareholders. That is how capitalism is supposed to work.<\/p>\n\n\n\n
Read it all<\/a>.<\/p> Tapa y tema principal de The Economist esta semana dedicada a Jensen Huang, Nvidia y su liderazgo en la revoluci\u00f3n de la #InteligenciaArtificial<\/a>.
👉🏼https:\/\/t.co\/ai8ulqpCSo<\/a> pic.twitter.com\/zhOJP63BVm<\/a><\/p>— Aldo Lema – Uruguay (@AldoLema_uy) September 3, 2026<\/a><\/blockquote>