GPU pricing and rental rates offer insights into the sustainability of the AI boom. Constrained energy infrastructure and material scarcity could create slowdowns, affecting GPU demand and valuations, especially for Nvidia. Data centre expansion is facing bottlenecks, such as strained electrical grids and limited high-bandwidth memory. Some analysts believe AI adoption is a genuine supercycle, while others suggest the exuberance is outpacing reality. Companies are investing billions in data centres and GPUs, but customer adoption may be lagging. The market may face a correction as growth rates between tech and the S&P 500 converge. Some analysts point to the widening gap between the tech sector's market cap share and net income since 2022.
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