AI Executives See Near-Unlimited Infrastructure Demand as Enterprises Shift to ROI-Driven Spending
Updated
Updated · CNBC · Jul 12
AI Executives See Near-Unlimited Infrastructure Demand as Enterprises Shift to ROI-Driven Spending
3 articles · Updated · CNBC · Jul 12
Summary
Pat Gelsinger and other AI executives said demand for AI compute remains far above supply, arguing recent chip-stock volatility does not signal a broader slowdown.
Meta's move to sell excess AI capacity, xAI's similar rentals and Samsung's post-rally stock drop had fueled overcapacity fears, but executives called those cases isolated and said data centers and key inputs are still scarce.
Nebius said demand is "extraordinary" and Lumentum said its data-center connectivity products are sold out for the next 5 years, underscoring persistent infrastructure bottlenecks.
Enterprises are still spending on AI, but executives said the market is moving from "tokenmaxxing" to ROI-focused "valuemaxxing," with cheaper open-source models taking simpler workloads while frontier models handle harder tasks.
That shift suggests AI adoption is broadening rather than fading, even as buyers become more selective on cost and chip suppliers warn shortages could last into 2030.
With massive factory investments underway, could today's chip shortage become a major market glut after 2030?
As AI chip shortages drive up costs, will new technology soon become a luxury for the wealthy?
In the global race for chip sovereignty, which nations will ultimately control the future of AI?
High Bandwidth Memory Bottleneck: How AI Demand Is Driving a Prolonged Global Chip Shortage and Reshaping the Tech Industry
Overview
The global memory chip market is facing a severe shortage of High Bandwidth Memory (HBM) as of mid-2026, mainly due to robust demand from the AI sector. HBM production is much more complex and resource-intensive than standard DRAM, and advanced packaging technologies like TSMC's CoWoS are already running at full capacity. This scarcity has caused memory prices to soar, leading to record profits for major manufacturers such as SK Hynix, whose surging product prices have fueled strong financial results. The combination of high demand, production challenges, and packaging bottlenecks points to a prolonged supply crunch and ongoing market volatility.