[torginus]

There is undoubtedly a bubble in the sense that AI is crazy overfinanced, and there's a semiconductor shortage - chip makers usually have like mid to low two digit margins for manufacturers of complex chips like NVIDIA, and single digit for ones commodities like memory.

The fact that these companies are either selling these things at multiples of their previous prices, and even then, their P/E ratios are often 10,20,40 shows there's a bidding war for these chips.

It's too much money chasing a fixed amount of product, and the only way to scale the industry is by scaling the entire supply chain, which is a long and expensive process, and certainly isn't fixed by throwing more money at companies.

If existing hardware was sold at the usual margins, all this stuff would cost a tiny fraction of the current price.

This is clearly a precarious position.

[grey-area]

There are also circular deals and self-financing happening from the likes of Nvidia.