Complete stagnation would mean that hundreds of billions earmarked for datacenter and chip production in the next few years would have to be cancelled.
The promise of this future demand is what is driving the inflation of the stock market, with investors happy to ignore the deep losses accruing to every AI software player...for now. Pulling the plug on the capacity-building deals is effectively an admission that demand was overestimated, and the market will tank accordingly.
It says it all about current market mania that Nvidia (who sells most of the future chip capacity) is valued at $4 trillion, more than every publicly traded pharmaceutical company (who have decades of predictable future cash flows) combined.
At least Nvidia is making money now. Just look at Tesla, also over a trillion doing exactly what and promising exactly what again? Wait for time of them not delivering coinciding at same time as AI and it is even deeper hole...
Considering the market cap of Tesla in light of what the company produces is the same mistake as anthropomorphizing Larry Ellison. It's like how the price of Dogecoin isn't related to how in vogue doge memes are.
The promise of this future demand is what is driving the inflation of the stock market, with investors happy to ignore the deep losses accruing to every AI software player...for now. Pulling the plug on the capacity-building deals is effectively an admission that demand was overestimated, and the market will tank accordingly.
It says it all about current market mania that Nvidia (who sells most of the future chip capacity) is valued at $4 trillion, more than every publicly traded pharmaceutical company (who have decades of predictable future cash flows) combined.