But the answer is, "kinda"? There are similarities, but the AI buildout is worse in some ways (more concentration, GPU backed debt) and better in others (capacity is being used, vendors actually have cash flow).
The conclusion:
> Unlike the telecom bubble, where demand was speculative & customers burned cash , this merry-go-round has paying riders.
Seems a little short sighted to me. IMO, there is a definite echo, but we are in the mid-late stage, not the end stage.
It's simply not fair to compare Lucent at the end of a bubble with Nvidia in the middle, and that is what the author did.
But the answer is, "kinda"? There are similarities, but the AI buildout is worse in some ways (more concentration, GPU backed debt) and better in others (capacity is being used, vendors actually have cash flow).
The conclusion:
> Unlike the telecom bubble, where demand was speculative & customers burned cash , this merry-go-round has paying riders.
Seems a little short sighted to me. IMO, there is a definite echo, but we are in the mid-late stage, not the end stage.
It's simply not fair to compare Lucent at the end of a bubble with Nvidia in the middle, and that is what the author did.
If you haven't listened to the referenced interview between Thompson and Kedrosky, I'd do so: https://www.theringer.com/podcasts/plain-english-with-derek-...