Forecasting the AI bubble: When scarcity turns to surplus
Artificial intelligence can be technologically transformative and still produce a capital bubble. Those two ideas are not in conflict. The bubble bursting does not require AI to fail. It only requires deployable supply and capital commitments to grow faster than monetizable demand. When productive, revenue-producing AI capacity takes longer to materialize, pricing will normalize and […] The post…
Forecasts predict the artificial intelligence (AI) sector could reach $1 trillion by 2028, surpassing the semiconductor market. However, the AI supply chain faces constraints due to high-bandwidth memory, advanced packaging, network fabric, power, and site readiness, potentially delaying price discovery and overbuilding. Investors should monitor bottlenecks and scarcity in supply to anticipate market shifts.
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