Sam Altman Warns of AI Bubble…Will Nvidia and AMD Stock Plummet?

▲ OpenAI, ChatGPT/AI generated image ©

Sam Altman, CEO of OpenAI, warned against over-investment in the artificial intelligence (AI) industry, bringing back concerns about a potential sharp decline in related stocks, including Nvidia (NVDA) and AMD (AMD).

According to crypto-specialized media Watcher.Guru on September 3 (local time), Altman diagnosed in a recent interview that early signs of unsustainable overheating are appearing. He explained that some companies are building large-scale computing resources (Compute) without securing sufficient users or revenue, and if the bubble collapse spreads throughout the economy, OpenAI could also be affected.

Investor Michael Burry, who predicted the 2008 US housing market collapse, has also raised the AI bubble theory. He disclosed that he has taken short positions in AI-related companies, including Nvidia, comparing the current situation to the Dot-com Bubble of the late 1990s and early 2000s.

Jensen Huang, CEO of Nvidia, also acknowledged that an AI bubble could emerge but predicted it is unlikely to materialize within the next five years. He explained that since the pace of AI infrastructure expansion is subject to physical constraints, the immediate key challenge is how quickly the necessary facilities can be built.

If the AI bubble collapses, related companies such as Nvidia and AMD, which have invested enormous costs in production and development, could face significant losses. This is because if demand plummets, expanded hardware could become idle assets that fail to generate revenue. However, Watcher.Guru reported that despite concerns about low revenue, market experts maintain a bullish outlook on the AI industry and related stocks.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*