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AI Investment Bubble Looms as GPUs Overheat, Analysts Warn

11/14/2025

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Summary

Story summary

In November 2025, analysts warned of an AI investment bubble, noting data center GPUs are "melting" under unprofitable workloads.
Hyperscalers are projected to spend about 94% of their operating cash flow on AI-related investments, supported by inflated cloud revenues.
Critics say depreciation timelines inflate profits as corporate debt rises, drawing comparisons to the dot-com era.

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Story summary

In November 2025, analysts warned of an AI investment bubble, noting data center GPUs are "melting" under unprofitable workloads.
Hyperscalers are projected to spend about 94% of their operating cash flow on AI-related investments, supported by inflated cloud revenues.
Critics say depreciation timelines inflate profits as corporate debt rises, drawing comparisons to the dot-com era.