AI-Driven Dystopian Employment Crisis: Another Catalyst from Nvidia?

Investing.com - Citrini Research’s report “Global Intelligent Crisis 2028” paints a rather dystopian picture: workers unemployed, personal incomes declining, but AI-driven economic output booming. The report caused a sensation on Monday, garnering over 16 million views on X platform, and could even drag down entire market sectors. Interestingly, whether intentionally or not, Citrini may be providing Nvidia with another bullish argument, even as the broader consumer economy is collapsing.

The core message of the report is straightforward yet seemingly contradictory: rapid adoption of AI may boost productivity while simultaneously causing large numbers of high-income white-collar workers to lose their jobs, allowing companies to significantly cut wage costs while maintaining output levels.

The result is an unusual economic system where productivity and corporate profit margins expand, but household incomes weaken. Additionally, as labor costs fall, companies redirect the savings into AI infrastructure, accelerating automation in a self-reinforcing cycle: layoffs increase profit margins, profit margins fund computing power, and computing power drives further automation. An increasing share of future output will be entirely machine-driven rather than human.

Unsurprisingly, this scenario seems increasingly bullish for Nvidia. In a world where software-driven intelligence replaces human labor, computing power is becoming the core input of production. Competition among companies is no longer primarily for talent but for computing power—the value shifts to those providing the hardware for automation.

In Citrini Research’s scenario, “owners of computing power see their wealth skyrocket as labor costs disappear.” Few companies are as well-positioned in computing power as Nvidia.

Unlike traditional recessions driven by cuts in tech spending, the automation race may force companies to continually invest in computing power to stay competitive—paving the way for Nvidia, even as AI adoption disrupts employment or puts broader economic pressure on the economy.

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