Reported about 2 months ago
As Nvidia prepares to release its fiscal second-quarter results on August 28, analysts predict a critical adjustment in its gross margin may indicate the early stages of an AI bubble bursting. Despite significant demand for its H100 GPUs driving up company revenues, rising competition and AI infrastructure innovations from major clients like Microsoft and Amazon signal potential declines in pricing power. Observers caution that the lack of clear profit strategies among businesses investing in AI may lead to disappointment, reminiscent of past tech bubbles.
Source: YAHOO