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Over the past few years, demand has surged for artificial intelligence (AI) chips. Major tech companies, startups, and governments are all intent on securing the most advanced chips on the market, aiming to train AI models and launch AI applications. As the technology increasingly gains widespread adoption, growth projections for AI applications are becoming more ambitious – and AI stocks have rallied sharply.
However, some AI stocks have risen so high that some analysts now warn of an “AI bubble" that could deflate. GPU chip market leader Nvidia Corp (NVDA), an early beneficiary of AI adoption, has been a primary focus of these bubble warnings. NVDA shares have surged nearly 244% over the past 52 weeks, and the company is now worth over $2 trillion.
