Dhaval Joshi Warns AI Bubble Is Rolling Across Sectors as DDR3 RAM Jumps 600%

3 articles · Updated · Fortune · Aug 16

Dhaval Joshi argues the AI trade is not one bubble but a rolling chain of booms and busts, with capital rapidly shifting to whichever asset investors think will capture AI profits next.
Software, silver and semiconductor stocks illustrate the pattern: SaaS rallied on AI productivity hopes before slumping, silver nearly tripled on data-center demand narratives, and chipmakers now face pressure as margin assumptions are questioned.
Joshi says the real excess is a profit-margin bubble, not simply an earnings bubble, as markets reassess whether AI-linked companies can sustain stratospheric margins while hyperscaler capex keeps eating into free cash flow.
Late 2026 to early 2027 is his rough window for peak AI capex, but he says the whole sequence could break if real yields jump, the capex cycle unwinds sharply or a non-mild recession hits.
A 600% surge in aging DDR3 RAM may be one candidate for the next bubble, underscoring his view that AI capital keeps hunting new 'playable segments' rather than collapsing in one synchronized crash.