Why Talk of an AI Bubble May Be Misguided
Nvidia has cemented its position at the center of the AI boom, supplying the high-performance graphics processors that power the world’s most advanced AI systems. Unlike the internet bubble of the 1990s, when telecom companies overbuilt networks that remained largely unused, the AI buildout is being fully consumed. Every chip Nvidia produces is immediately spoken for, deployed in data centers, and generating revenue. There is no equivalent of “dark fiber” in this era. Instead, data centers report GPUs running at near-constant capacity, sometimes overheating under the stress of nonstop training. That intensity reflects authentic demand rather than speculative excess. Financial…