Semiconductors are a cyclical industry. Undersupply followed by oversupply. Boom and bust. Feast and famine. But demand for semiconductors has gone up, albeit cyclically, for 6 decades. Not a trend I would bet against.
Every car will get AI chips, every laptop, every server, every phone, and many home appliances. And I expect people will eagerly upgrade their electronics to get the faster AI chips in the decade to come.
Will it be a AI accelerator chip or just a regular CPU, which after X number of years of Moore's Law development will be as powerful as a H100 is today? Can you charge that much extra for it in X years, if you are NVidia?
At a certain point the AI chip market disappears and it's absorbed into general purpose computing.
Every car will get AI chips, every laptop, every server, every phone, and many home appliances. And I expect people will eagerly upgrade their electronics to get the faster AI chips in the decade to come.