Moor Insights & Strategy founder, CEO, and chief strategist Patrick Moorhead had some choice words for the AI market to come crashing down anytime soon, where in a chat with YahooFinance, he said: “This whole notion of AI coming to a screeching halt anytime soon is fiction“.
Moorhead’s comments are coming from some companies worried of an AI bust, and the entire market coming to a screeching halt, including SK Group chairman Chey Tae-won who recently said at the 47th KCCI Jeju forum, who compared the AI boom to the gold rush, and that “without making money, the AI boom could vanish, just as the gold rush disappeared”.
The chat with YahooFinance was just the start of it, with Moorhead taking to his X account to continue with some even better comments on the AI market. Moorhead replied to Edward McKernan, who said “need to frame this within power demand over next few years… something most on Wall St don’t know yet”.
Moorhead replied: “Most investors only look 12 months out. Don’t see us in bad shape in that timeframe. The FOMO will keep everyone buying datacenter, PC and phone chips. Huge“. In a follow up post on X, he added: “consider the typical investor looks 12 months or less. Nothing will change in this timeframe. There’s so much AI FOMO for infrastructure“.
I do love that Patrick has pulled in the “AI FOMO” terminology into the industry, because that’s exactly what it is: AI FOMO (for those of you who don’t know, FOMO = Fear Of Missing Out). NVIDIA has sold virtually every Blackwell AI GPU it has coming into production, AI companies, cloud service providers (CSPs) are all scrambling to buy as many B100, B200, and GB200 AI chips and AI servers as possible.
TSMC is increasing capacity across the board to handle NVIDIA’s new Blackwell AI GPUs, with CoWoS advanced packaging capacity being increased because NVIDIA needs it. HBM3E is sold out by SK hynix and Samsung through the rest of this year, and into 2025, while NVIDIA has its next-gen Rubin R100 AI GPU coming in late 2025 with next-gen HBM4 memory.
Amazon, Google, Microsoft, Tesla, OpenAI, Apple, and everyone in between are buying NVIDIA’s current Hopper H100 AI GPUs, while doubling down on Blackwell B100 and B200 AI GPU orders. GB200 AI server cabinets will see NVIDIA pull in $210 billion in revenue alone in 2025, so things are only just heating up.