There is significant redundancy of supply in AI data center capacity and chip production, similar to the redundancy in railroad track miles and fiber optic capacity in prior cycles, and because multiple hyperscalers are building duplicate LLM capabilities and infrastructure, they will eventually compete on price, which will compress margins below acceptable levels.
forecastpending
Speaker
Chris SemperEvidence Quote
“redundancy of supply... same redundancy in data centers and in chips... they compete on price... margin compression.”
Source
We Asked Chris Bloomstran Why He Won’t Own the S&P 500 At These Levels — And What He Does Instead— Excess ReturnsCreated: 8/12/2026, 6:13:17 PM
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