Comment by digitcatphd

I have started to notice this as well over the past several months, in-fact, I would say it is orders of magnitude larger than the Crypto bubble and when it bursts will be significantly more impactful. Right now, everything is propped up on the premise the hyperscalers will grow EPS proportionately to their investment and that ROA is being priced in as a best case scenario (hope) in their share price. Maybe its not ROA at all, maybe its simply FOMO, we keep citing this 'AI Race' as if there is some end objective to 'win' drawing parallels to the nuclear arms race that only resulted in massive wasted CAPEX in decaying nukes sitting in unused bunkers since the cold war. (Not to mention it isn't even clear this arms race played a direct factor in the war beside depleting resources) Everyone is happy right now. Execs get stock bonuses, investors get returns, vendors get contracts. Once this is questioned, and history demonstrates it undoubtedly will be, it will cause a cascading collapse. History is a mathematical truth.