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// 52m agoNEWS
NVIDIA’s Chip Avalanche Exposes AI’s Circular Bet
A Wall Street Journal report says Jensen Huang warned that prepaid wafers and memory were arriving like an “avalanche” as cloud customers shifted toward in-house chips. NVIDIA’s financing and infrastructure partnerships helped sustain demand, but intensified concerns about circular AI spending and excess capacity.
// ANALYSIS
NVIDIA’s supply-chain predicament reveals the uncomfortable economics behind the AI infrastructure boom: demand may be enormous, but vendor-funded demand is not the same as durable customer demand.
- –Prepaid TSMC wafers, memory, and packaging become liabilities if hyperscalers reduce NVIDIA purchases.
- –Circular investments can keep data-center construction moving while obscuring weak end-market economics.
- –HBM demand is squeezing conventional DRAM supply, contributing to higher memory prices for PCs and servers.
- –Developers remain dependent on NVIDIA’s CUDA ecosystem, but cloud providers’ custom chips threaten its hardware pricing power.
- –The company’s pivot from gaming GPUs to AI infrastructure has made consumer hardware and memory shortages collateral damage.
// TAGS
nvidiagputraining-infracloudfundingpricing
DISCOVERED
52m ago
2026-11-13
PUBLISHED
4h ago
2026-11-13
RELEVANCE
8/ 10
AUTHOR
oscarfr