In the last three weeks, there have been persistent headlines about an AI bubble, often taking comments from investors and technology leaders out of context. Obvious examples include Bloomberg’s reporting of Hock Tan’s comments in Singapore and of Ken Griffin’s comments in New York yesterday.
The fairer interpretation of his comment ("there's almost certainly bubbles within this moment in time”) is that some valuations in the AI trade are in bubble territory but some big winners will emerge. The full video of his comments is here.
The narrative that the trade is in trouble was pressed hard in the data center financing context. Zerohedge has summarised the list of projects where investors have been spooked:
Notably, Elice is a small cap trading in Korea, and has since gone back limit up +30% today.
Amidst this noise, I could not find a single commentator who pointed out Trendforce’s comment on 30 September that eSSD is the only memory product category with forecasted accelerating price increases in Q4.
This point has now been acccompanied by announcements from DeepSeek and OAI about cache management: