The AI boom-bust scenario

New restrictions have been placed on powerful processors used for AI. Analyst Jon Peddie looks at the unintended consequences as companies and sovereign nations scramble to take advantage of the latest gold rush. New limitations may alter the market share among GPU AI suppliers, as high demand for AI accelerators is driving buyers to secondary suppliers, potentially weakening the position of tier one suppliers. Companies like Nvidia may face challenges in maintaining high gross margins and avoiding commoditization. Other non-FPGA AI ASIC developers may struggle is they’re not able to change with AI market demand. The trade restrictions could give