For years, Jensen Huang's Nvidia Corporation (NVDA) has been the biggest winner of the artificial intelligence (AI) revolution, turning into Wall Street's favorite AI stock as insatiable demand for its chips fueled one blockbuster quarter after another. But after an extraordinary run, cracks are beginning to emerge in the market's seemingly unstoppable AI optimism.
While Nvidia’s fundamentals hardly indicate weakness, investors are increasingly wary of soaring AI infrastructure spending, intensifying competition from custom AI chips, lofty expectations, and the growing risk that the AI boom may have run too far, too fast. And those concerns gained fresh momentum after Taiwan's central bank governor, Yang Chin-long, warned that while the AI boom is supported by genuine economic growth, aggressive borrowing by technology companies to finance AI investments could inflate an unsustainable bubble if left unchecked.
