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Based on my recent research and understanding, this AI bubble is bound to burst!
A memory company with a net profit margin of 80%, two years ago these memory companies might still have been losing money.
It shows that AI companies and the industry are all scrambling, not wanting to miss the opportunity to stand at the forefront of the next era. And in the next era, whoever has AI will dominate the world.
But AI is not clothing or cars; it has different personalized needs. The AI model that ultimately wins will be the most powerful, capable of covering everything, while the rest will die out.
So the craziness now will lead to the depression then. The internet bubble of 2000 might happen again.
Similarly, look at the scene of Micron back then, it’s almost identical, history is always astonishingly similar.
Based on the current speed of AI purification, the timing could be within the next 1-2 years!