Nvidia’s record close pushed its market value past $5 trillion, but the rally landed just as the Bank of England’s deputy governor warned that global stock prices look detached from the risks piling up underneath them. Sarah Breeden said there is “a lot of risk out there and yet asset prices are at all-time highs,” adding that she expects an adjustment at some point.
The chip trade is still being fueled by a powerful AI bid, with Nvidia up 4.3 percent to $208.27 and Intel posting its best day since 1987 after better-than-expected earnings. That rally spilled into AMD and Qualcomm, while investors looked ahead to hyperscaler earnings next week and fresh proof that AI infrastructure spending is not cooling.
That optimism is exactly what worries Breeden, who singled out a potential shock from private credit losses, an AI valuation reset and a broader macro hit landing at the same time. She said private credit has swelled to $2.5 trillion in 15 to 20 years without being tested through a full downturn, a reminder that the market’s resilience has not yet been stress-tested.
For now, traders are still treating setbacks as buying opportunities, but the next real check comes with earnings from the hyperscalers next week, which could either validate the AI spending boom or expose how much good news is already priced in. If those results disappoint, Breeden’s warning about an eventual adjustment could stop sounding theoretical very quickly.
