NVIDIA Earnings Put the AI Boom to the Test — Woo Warns of “Catastrophe”

The current valuation of the AI market is a speculative bubble driven by a "winner-take-all" fallacy and irrational fear of missing out rather than sound economic logic. David Woo, a former Wall Street strategist, argues that companies like Anthropic face zero chance of achieving Google-like dominance because AI is rapidly becoming a commoditized technology without a natural moat. Major tech firms are allegedly inflating their financial health through "accounting gimmicks," such as Microsoft extending the depreciation life of rapidly aging data center chips from 15 to 25 years to mask massive capital expenditures. Furthermore, corporate earnings are being artificially "dressed up" by revaluing private holdings and utilizing tariff rebates. This hype machine, bolstered by political influence and massive corporate guarantees between players like NVIDIA and OpenAI, creates a dangerous environment where market fundamentals are ignored, potentially leading to a catastrophic correction for the broader U.S. equity market.