Many people are obsessed with the valuations of AI chipmakers like Nvidia and AMD, calling them bubbles.

They also love to use an analogy to make this inference:

The Dot-Com Boom. But they don't know what they're comparing it to. During the Dot-Com Boom, companies laid thousands of miles of cables under the oceans because they believed the internet would grow so quickly.

But humanity wasn't ready for the internet yet.

Payment infrastructures, regulations, computers used, local telecom infrastructures, and consumer habits could not keep up with the speed of the cable network being built.

Furthermore, the business models of companies trying to operate online were not yet well-established.

Even Amazon, one of the most powerful companies at the time, was incurring incredible losses.

All of this gave rise to the concept of "dark cable." In other words, "dark cable." "Unused internet cables. "

The percentage of unused dark internet cables reached 90% at the peak of the dotcom bubble. In other words, the vast cable infrastructure financed by cable companies through borrowing was lying idle.

In other words, the massive cable infrastructure financed by cable companies through borrowing was lying idle.

Fast forward to today, the financial reports released this week by Meta, Amazon, Google, and Microsoft consistently mention the lack of AI infrastructure.

All these companies claim they can't keep up with the demand for AI processing power and promise to increase their capital expenditures for next year.

We will certainly experience market corrections in the coming period.

And yes, there are companies in the AI ​​ecosystem whose value has been unnecessarily inflated.

But it's certain that companies like Nvidia and AMD will continue to deliver real growth for many, many years to come.

$NVDAON $MSFTON

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