Thoughtful Money with Adam Taggart · Tuesday, August 11, 2026
Ed Zitron criticizes the AI market, stating that much of Nvidia's revenue and the broader semiconductor stock inflation is driven by speculative investment in AI data centers and companies like OpenAI and Anthropic, which are not yet profitable. He argues this is a cycle of speculation built on technologies that may not deliver on their grand promises.
“And then on top of that, top of the pile, we have Nvidia and a bunch of semiconductor stocks that are being inflated predominantly by speculative investment in AI data centers, that 70% number I got to earlier.”
“If 70% of Microsoft's AI revenue, which Bloomberg has now estimated is true, and I found it from analyst estimates from UBS, uh, was UBS, Barkley's and Wells Fargo. Let's say 70% of their AI revenue is Open AI, right? That means a vanishingly small part of their compute is actually useful outside of Open AI.”
“So we just have speculation on speculation on speculation on speculation on top of software that is the very antithesis of why people use software, which is we use software to make humans better, and that we can rely on.”