AI Bubble: Demand Is Booming, But Risks Remain

August 28, 2026, Opinion: "Nvidia's Q2 earnings confirmed robust AI demand, with revenue soaring 106% year-over-year to $96.2 billion, largely driven by its data center business. CEO Jensen Huang provided strong forward guidance, forecasting 70% data-center revenue growth for fiscal 2028, indicating demand far exceeds supply. While the new Vera Rubin platform is experiencing the fastest product ramp, profit margins are expected to dip due to memory shortages. Concerns remain regarding high customer concentration, with five clients comprising 70% of receivables, and Nvidia's significant direct financial exposure to AI infrastructure buildouts. To mitigate this, Nvidia partnered with major financial institutions to mobilize over $500 billion in third-party capital for customers, aiming to diversify risk."