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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AI Bubble Driving Market And GDP
- The U.S. stock market bubble is driven largely by AI investment rather than fundamentals.
- Without AI capex, U.S. GDP growth would be near zero, making the bubble economically crucial.
Mag-7 Concentration Fuels Growth Illusion
- Seven big tech firms (Mag-7) now dominate the S&P 500 and US market cap.
- Investment in information processing and software accounted for most U.S. GDP growth in early 2025.
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.