Demand for AI chips is predicated on those chips producing value for their customers. But are there any AI products that are generating significant revenue yet? If those fail to materialize there will be a gigantic crash.
My take on this: AI is real, and AI products are adding significant value, but this will not show up as revenue gains for companies. Companies have no choice but to invest in AI to remain competitive in terms of costs. Consumers will realize a lot of this value as reduced prices.
The challenge isn't just to generate revenue, but to generate a TON of revenue that justifies the massive investments these companies are making. It's not obvious to me that any of these products are going to be as successful as the market needs them to be.
The massive capital investments are mostly coming from companies that are going to be selling these as services, so not necessarily the product builders themselves. I think there will be a lot of products finding revenue coming.
