Since some times now the AI bubble is growing and its consequences with it, flash storage price increase, electricity went wild in some places, GPU… Don’t need to say anything sadly… NVIDIA became the most valuable company exceeding 4T
So when all of this will go crazy and grow to the burst? When does prices will go down and speculators rushing out of it?
Open question feel free to explain the wider you can, I’m not a financial so I’m really interested in some analysis of the situation :)
I think this is probably not a good way to look at it.
The company you work for, or the company that supplies the company you work for, or the company that manages your 401K etc are all invested in this bubble.
When I say that the growth of GDP of the USA used to be 70% consumer spending year over year and it’s now something like 60% AI, I want you to understand that consumers aren’t gonna have money to make up that 60% when this bubble pops. Because all of us will be detrimentally affected when it happens.
A lot of us don’t know where or when the blow is going to come from, and somehow we think ourselves insulated from the effect this bursting bubble will have. But that’s simply not true.
The prices of everything that we need to live and every convenience we rely on to make our lives easier is now tied to this bubble. Things are going to get more expensive when it pops (even if it craters the market on some components etc).