--- title: AI demand is 'unlimited'. So why are chip stocks falling? description: AI executives, including former Intel CEO Pat Gelsinger, claim AI demand is effectively unlimited, with energy being the only real constraint. Lumentum reports... canonical: https://daily.dev/posts/ai-demand-is-unlimited-so-why-are-chip-stocks-falling--dtmkn9n3a twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: AI demand is 'unlimited'. So why are chip stocks falling? | daily.dev og:description: AI executives, including former Intel CEO Pat Gelsinger, claim AI demand is effectively unlimited, with energy being the only real constraint. Lumentum reports... og:url: https://daily.dev/posts/ai-demand-is-unlimited-so-why-are-chip-stocks-falling--dtmkn9n3a og:image: https://api.daily.dev/og/posts/DTmKn9N3a.png og:image:alt: AI demand is 'unlimited'. So why are chip stocks falling? og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # AI demand is 'unlimited'. So why are chip stocks falling? **[The Next Web](https://daily.dev/sources/tnw)** · 3 min read · 0 upvotes · 0 comments ## Summary AI executives, including former Intel CEO Pat Gelsinger, claim AI demand is effectively unlimited, with energy being the only real constraint. Lumentum reports products sold out five years ahead. Yet chip stocks remain volatile despite a ~60% year-to-date rally in the PHLX chip index, because sky-high valuations already price in flawless execution — meaning even strong results like Samsung's massive profit forecast or Cerebras doubling revenue can still cause stock drops. Meta's plan to sell excess compute capacity added further uncertainty. Bulls point to genuinely profitable companies unlike the dot-com era; bears argue market concentration exceeds 2000 levels and returns on massive capex are unproven. The deeper issue: if energy is the binding constraint, chip sector valuations rest on infrastructure the sector doesn't control. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [AI chip stocks lost 12% in two days as investors hunted new winners](https://daily.dev/posts/ai-chip-stocks-lost-12-in-two-days-as-investors-hunted-new-winners-jgxockyul) · The Next Web · 1 upvotes · 1 comments - [AI demand sparks ‘chipflation’ warning](https://daily.dev/posts/ai-demand-sparks-chipflation-warning-r2p7ivmni) · TechCentral · 0 upvotes · 0 comments - [Intel takes another hit](https://daily.dev/posts/intel-takes-another-hit-4urclb8ya) · TechCentral · 0 upvotes · 0 comments - [Energy IPOs surge as investors hunt for ways to play AI boom](https://daily.dev/posts/energy-ipos-surge-as-investors-hunt-for-ways-to-play-ai-boom-cnremsxhu) · Ars Technica · 1 upvotes · 0 comments --- Tags: [#ai](https://daily.dev/tags/ai), [#nvidia](https://daily.dev/tags/nvidia), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure) [View this post on daily.dev](https://daily.dev/posts/ai-demand-is-unlimited-so-why-are-chip-stocks-falling--dtmkn9n3a) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"AI demand is 'unlimited'. 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