Artificial Intelligence (AI) has helped global markets grow a lot. However, there is now a big problem. There are not enough essential memory chips. This shortage could stop AI from growing more. Many industries are affected. This includes technology and cars. Investors are also changing their minds. They are less optimistic.
The main reason for this problem is demand. Companies need more high-bandwidth memory chips. These chips are very important for AI. Data centers and cloud platforms need many of them. This means there are not enough chips for everyone. Supply chain problems are causing issues. Companies are paying more for chips. Some companies might have problems making their products.
Global events have made this situation more complex. Nvidia can now send advanced AI chips to China. This will help Chinese AI developers. However, it also creates new challenges. Chinese companies have been good at using less powerful chips. They used better software and data. Now, with better chips, they can develop AI faster. This will make international competition stronger.
Investors are worried about money. The CEO of deVere Group warned about a "profit shock." He said that AI has driven markets for two years. Now, people want to see real money. Investors are looking for proof that AI investments are making money. They are not just optimistic anymore.
Big tech companies have invested a lot in AI. Companies like Google and Amazon are showing different results. Some are making money from AI quickly. Others expect money in the future. Investors are carefully checking which companies can make profits from AI.
Car companies are also affected. Electric cars need many chips. These chips help with driving and entertainment systems. If there are not enough chips, car deliveries could be delayed. This will make investors more worried.
The next few weeks are important. Nvidia will announce its earnings soon. This will show how the chip shortage is affecting companies. The results will help decide the market's direction until 2026. It will show if AI will keep growing fast.