Closing Bell Closing Bell: Data Center Bubble Trouble? 03/25/25
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Mar 25, 2025 Samantha McLemore, Founder and CIO of Patient Capital, provides sharp insights on current market trends and investments. She discusses the red flags raised by Alibaba's Joe Tsai regarding a potential bubble in data center construction fueled by AI. McLemore explores the implications for tech investments amid economic uncertainty. The conversation also highlights how Apple's upcoming WWDC could influence investor sentiment, especially as they await tangible results amid rising skepticism about innovation and consumer spending.
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Data Center Bubble?
- Joe Tsai warns of a potential data center construction bubble, questioning if the build-out pace will exceed demand.
- This concern arises as DeepSeek's breakthrough shows cutting-edge AI models can be built more efficiently and cheaply.
Nvidia's Reassurance
- Despite concerns, Nvidia CEO Jensen Huang reassured that tech giants are not cutting spending, but investing heavily.
- This suggests a potential defensive stance to calm market jitters.
Early Concerns
- Samantha McLemore notes that Joe Tsai's warning is still early.
- She suggests current concerns are beneficial for managing stock expectations.