Talk of an AI bubble may be overstated, according to a leading technology research firm that sees data center demand expanding at an extraordinary pace.
In a new Schwab Network interview, Futurum CEO Daniel Newman says forecasts for the next five years point to a booming market for AI servers and chips, despite skepticism in some corners of Wall Street.
According to Newman, one tech giant is going to rake in massive profits selling picks and shovels in the new gold rush.
“Yeah, the bubble story is completely blown out of proportion. In our forecast over the next five years, we have that data center AI number at $583 billion, of which Nvidia is going to be the biggest beneficiary still. We are going to see some bifurcation. We’ve got a really aggressive growth in the back half of the decade for those custom AI chips. So we really like Broadcom. We really like Marvell.”
He emphasizes that while other players will grow, Nvidia’s grip on GPUs remains firm.
“But Nvidia we think is going to hold on to about 90 percent of the market as it pertains to that GPU.”
Newman points out that the investment surge is already visible.
“So most of what we’re seeing right now, this almost $200-plus billion of CapEx this year, is all about these data centers. All that enterprise consumption is still to come.”
Futurum Group is a technology advisory and research firm that tracks AI, cloud, semiconductors and enterprise IT for Fortune 500 clients.