AI Buildout Tops GDP Share Since Railroads as Commentary Says Boom Is Only in Inning 3
Updated
Updated · Yahoo Finance · Sep 8
AI Buildout Tops GDP Share Since Railroads as Commentary Says Boom Is Only in Inning 3
3 articles · Updated · Yahoo Finance · Sep 8
Summary
The commentary argues the AI surge is still in its early phase—roughly the third inning of nine—rather than nearing a dot-com-style collapse.
A key difference is utilization: Nvidia H100 training chips, already 3 years old, are renting for $3.28 an hour after a 22% month-on-month rise, suggesting capacity is scarce rather than sitting idle.
That contrasts with the late-1990s telecom boom, when more than $500 billion of debt-funded fiber investment left over 90% of major transoceanic and transcontinental lines dark after the bust.
The piece also says AI leaders look financially stronger and less stretched than dot-com peers: about 50% of current tech IPOs are GAAP-profitable versus roughly 25% in 1999, while Dell trades at 28.52 times earnings versus Cisco's 200 times peak.