The phrase “AI bubble” has exploded across corporate earnings calls, appearing in 42 transcripts between October and December 2024—a staggering 740% increase from the previous quarter, according to AlphaSense analysis. This dramatic surge reflects mounting concerns about whether the artificial intelligence boom represents sustainable growth or speculative excess.
In Q3 2024, only five transcripts mentioned the term, while Q2 had just four. For all of 2024, executives and analysts used the phrase in 24 transcripts total, compared to nine in 2023. The analysis counted instances where “AI” and “bubble” appeared within five words of each other.
Companies across semiconductors, cloud infrastructure, financial services, and industrials are now fielding pointed questions about AI sustainability. At UBS’s Global Technology and AI Conference on December 2, AMD CEO Lisa Su firmly stated, “from the standpoint of, you know, do we see a bubble? We don’t see a bubble.” Nvidia CFO Colette Kress dismissed concerns about a “supposed AI bubble,” while CEO Jensen Huang told investors in November: “There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different.”
The anxiety stems from the massive scale of AI investments versus actual returns. Tech giants including Google, Meta, Microsoft, and Amazon all announced plans to increase data center spending this quarter. Meanwhile, partnerships involving trillions of dollars in infrastructure investments contrast sharply with billions in actual AI revenue.
Sarah Hoffman, director of AI thought leadership at AlphaSense, explained that “huge partnerships and people throwing out money amounts for infrastructure—like trillions of dollars” are unprecedented. The gap between investment and revenue “is what’s getting people a little bit freaked out.”
Gil Luria of DA Davidson pointed to “circular transactions” as concerning, citing examples like “Nvidia investing a dollar in CoreWeave, CoreWeave borrows nine, and uses eight of them to buy Nvidia chips.” Even prominent figures like Sam Altman and Bill Gates have acknowledged froth in AI spending. Michael Burry, famous for predicting the 2008 housing crisis, made headlines by shorting Nvidia, the world’s most valuable company. Luria noted that only financial results will settle the debate: “The only thing they can do is show results, and those have to be financial results.”
Key Quotes
There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different.
Nvidia CEO Jensen Huang addressed bubble concerns during the company’s November earnings call, defending the sustainability of AI investments despite growing skepticism from analysts and investors.
We’ve been seeing these huge partnerships and people throwing out money amounts for infrastructure—like trillions of dollars—which I can’t remember ever hearing before.
Sarah Hoffman, director of AI thought leadership at AlphaSense, explained why bubble talk has intensified, pointing to the unprecedented scale of AI infrastructure investments that dwarf historical technology spending.
Nvidia investing a dollar in CoreWeave, CoreWeave borrows nine, and uses eight of them to buy Nvidia chips. That’s the echoes of bubbles past.
Gil Luria, managing director at DA Davidson, identified concerning circular transaction patterns that remind analysts of previous technology bubbles, where money flows in self-reinforcing loops rather than generating independent economic value.
There’s nothing they can say that will change people’s perception of whether or not there’s a bubble. The only thing they can do is show results, and those have to be financial results.
Gil Luria emphasized that executive reassurances won’t quell bubble concerns—only demonstrable revenue and profits from AI investments will convince skeptical investors that the boom is sustainable rather than speculative.
Our Take
The 740% surge in bubble mentions represents more than semantic curiosity—it’s a quantifiable measure of growing market anxiety. What’s particularly striking is the defensive posture of industry leaders like Nvidia and AMD, who typically project confidence. Their need to explicitly deny bubble conditions suggests the narrative has gained serious traction.
The comparison to “bubbles past” is apt. The circular transaction pattern—where AI chip makers invest in cloud providers who then purchase those same chips—creates artificial demand that inflates valuations without corresponding end-user revenue. This echoes the dot-com era’s questionable business models.
However, unlike previous bubbles, AI is demonstrably transforming productivity and creating real value. The question isn’t whether AI is legitimate, but whether current valuations and investment levels are sustainable. The coming quarters will be decisive: companies must translate massive capital expenditures into measurable revenue growth, or face a significant market correction that could set the industry back years.
Why This Matters
This surge in bubble talk represents a critical inflection point for the AI industry. The 740% increase in bubble mentions signals that investors, analysts, and executives are grappling with fundamental questions about AI’s economic sustainability. With tech giants committing to trillions in infrastructure spending while AI revenue remains in the billions, the disconnect raises legitimate concerns about return on investment.
The conversation matters because it could influence future capital allocation, potentially slowing the breakneck pace of AI development if investors become more cautious. For businesses integrating AI, this skepticism may affect access to funding and partnership opportunities. The involvement of figures like Michael Burry—who correctly predicted the 2008 housing crisis—adds credibility to bubble concerns and could trigger broader market reassessment.
Moreover, the “circular transactions” pattern identified by analysts echoes warning signs from previous tech bubbles. How this plays out will determine whether AI follows the path of transformative technologies like the internet or speculative manias like the dot-com crash. The industry’s ability to demonstrate concrete financial returns in coming quarters will be crucial for maintaining investor confidence and sustaining the AI revolution’s momentum.
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Source: https://www.businessinsider.com/ai-bubble-mentions-surge-earnings-call-data-2025-12