Bloomberg Surveillance · Tuesday, July 7, 2026
Michael Green observes that many buyers of expensive AI chips are struggling to utilize them, leading to increased secondary market supply. This, combined with primary sales from manufacturers like Nvidia, creates a complex situation where some customers are competing without clear underlying demand, despite the narrative of insatiable compute needs.
“So what it's telling you is that many of the individuals who purchase those incredibly expensive chips with extraordinarily high gross margins can't figure out what to do with them, thank you, so they're basically putting them into the secondary market.”
“So we are seeing effectively, you know, incremental supply come into the market, not just from the primary sales from Nvidia and others, but now from their customers who in many ways are competing without underlying demand.”
“Well, listen, I think they know what they're talking about as well, and certainly to their face, they're actually seeing that, among other things, if you're Meta or your XAI for example, that wants to maintain optionality to that you're not going to cancel your contracts and in fact you're going to try to keep yours place in line.”