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The article discusses the challenges and risks associated with the current AI boom, drawing comparisons to the dot-com bubble of the 1990s and early 2000s. Although chip manufacturing companies have achieved record profits driven by demand for AI technologies, most firms within the supply chain are still seeking ways to turn investments into sustainable profits. Concerns are raised about the possibility of a financial bubble forming, with prices rising based on uncertain future expectations. The article questions the sustainability of this growth and highlights the dangers of a potential corporate funding bubble, especially since many companies lack clear profitability, despite ongoing expenditures on data centers and processors amid weak current returns. It also warns of market pressure if companies fail to meet profit expectations, warning of the risk of a financial crisis similar to that caused by the burst of the internet bubble, compounded by increasing risks resulting from growing dependence on financing and financial interconnectedness among companies.
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