The AI rally is becoming harder to dismiss, but the bigger question is whether this growth can remain sustainable.
NVIDIA recently reported $96.2B in quarterly revenue, up 106% year over year, while CEO Jensen Huang said the company expects to sell roughly twice as many chips next year. That points to continued demand for AI computing, but it also shows how much capital is being committed to the AI infrastructure cycle.
I’m cautiously bullish on AI stocks over the longer term, but I don’t think every AI-related company will benefit equally. Valuations, real revenue growth, infrastructure costs, power availability and actual AI adoption will matter more as the market matures.
Government support could also accelerate the sector. The U.S. has announced plans for an AI Force, while policymakers continue debating how quickly AI should develop.
For me, the key question isn’t simply whether AI is the next big technology cycle. It is whether future AI revenues can justify the enormous spending happening today.
That’s what I’ll be watching next.