7am How long can the AI boom last?
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Nov 26, 2025 Stephen Nellis, a Reuters technology journalist specializing in AI and semiconductors, dives into the current AI investment boom. He discusses how companies are heavily investing in AI without yet seeing profits. Nellis highlights NVIDIA's dominance in providing chips that power AI, along with its major customers like OpenAI and Microsoft. He also explores the risks of an impending AI bubble and potential fallout, warning that both investors and pension funds might feel the impact if the boom turns to bust.
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AI Demand Shows No Immediate Collapse
- NVIDIA's strong earnings showed AI demand hasn't collapsed and may represent a durable tipping point, not a bubble.
- Stephen Nellis observed revenue and forecasts beat expectations, signaling sustained appetite for AI compute.
NVIDIA Dominates AI Training Chips
- NVIDIA captures roughly 80–90% of the chips used to train large AI models today.
- That market dominance underpins its extraordinary valuation and influence in the AI ecosystem.
Few Big Buyers Drive Sales
- Four customers account for about 61% of NVIDIA's revenue, likely including OpenAI, Meta and Microsoft.
- These buyers purchase chips in huge volumes, sometimes tens to hundreds of thousands at once.