AI chip demand is still strong, but it's obviously slowing down. $TSM just announced its February revenue report, and they delivered a very strong 29.9% YoY growth; however, this is a significant deceleration from 43% YoY growth they posted for the same quarter last year. Hyperscalers are close to depleting their free cash flow, and many of them have already started tapping into debt channels to keep increasing AI spending. At some point, they'll have to collect return on investment and pay their debt, so they'll inevitably have to reduce capex. I think we are close to that point, as most AI workloads are predicted to shift to inference by 2028, and hyperscalers have nearly depleted their free cash flow.
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