A veteran investor is warning that parts of the artificial intelligence economy may not survive the current spending boom.
Kamil Dammich, partner and portfolio manager at North of South Capital, says in a new CNBC interview that the surge in GPU demand echoes the behavior seen in late 1990s tech markets.
He recalls watching the internet bubble form at the start of his career, when companies poured money into infrastructure before real revenue materialized. When expectations failed to match earnings, he says the shakeout hit fast.
“And I cut my teeth. I started off working back in the late 90s, and I saw the internet bubble firsthand. And very early on, people were pulling out their hair and saying this was going to be a problem. And of course, they were right in the end.”
Dammich says the risk today is that AI spending is outpacing monetization, especially among early hyperscaler customers racing to build large language models.
“The hallmark of a bubble is that you end up overspending on a technology, and then you simply are unable to deliver the revenues and the earnings in the near term that technology promised.”
He adds that many firms are building similar capabilities, pushing GPU orders higher without guaranteeing sustainable business models.
“And I’ll stick my neck out here. I think some of Nvidia’s biggest customers will not be around in three to five years time. They’re going to go bust. It’s a business where I think you need to find real revenue generation applications. And that’s a lot harder in some ways than developing a really fancy model that works well. And you’ve got a lot of people developing the same thing. There’s a lot of parallel spend. And that’s, of course, what’s helping Nvidia because everyone’s spending money on kind of the same things. So that’s the risk.”
Some of Nvidia’s biggest customers include Amazon Web Services (AWS), Microsoft, Google, OpenAI, Meta, Tesla, and Apple.
Dammich’s comments come as Nvidia printed massive beat and guidance raise following its earnings report for the quarter ending in September. The company reported fiscal Q3 2026 revenue of $57 billion compared to estimates of $55 billion, while earnings came in at $1.30 per share versus expectations of $1.26. Meanwhile, Q4 guidance revenue stood at $65 billion versus projections of $62 billion.
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