WSJ What’s News What’s News in Earnings: Should Markets Worry About an AI Bubble?
19 snips
Nov 21, 2025 
Robbie Whelan, Wall Street Journal's chips reporter, dives deep into the semiconductor landscape. He reveals how strong earnings from giants like NVIDIA mask underlying market volatility, raising concerns of an AI bubble. Whelan discusses the intricate dynamics of chip demand against a backdrop of fluctuating investor confidence and financing issues. He also highlights the mixed fortunes of AI customers like Microsoft and OpenAI, elaborating on their unique economic challenges. Insights on TSMC’s pivotal role add depth to this engaging analysis.
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Record Demand For AI Chips
- Chipmakers are experiencing record demand as big tech and AI developers buy vast amounts of semiconductors.
- Earnings show strong near-term growth, pushing companies like NVIDIA to unprecedented market valuations.
Circular Deals Raise Revenue Questions
- Markets worry because many AI deals are opaque and potentially "circular," where vendors fund customers who may buy their products.
- That structure raises questions about the timing and sustainability of future revenues.
Designers Lean On Contract Foundries
- Major chip designers like NVIDIA and AMD rely on contract manufacturers, notably TSMC, for production.
- TSMC and other manufacturers are thriving while Intel's foundry lags after missing manufacturing generations.