Analyst warns of unstable AI compute feedback loop as Kioxia's NAND price warning triggers flash crash
bookwormengr · x · 2026-10-31
A longtime skeptic of AI compute overbuild argues hyperscaler and neo-cloud executives are stuck in a positive feedback loop: buying more compute is rewarded by markets, which lifts stock prices and executive comp, prompting even more purchases.
He dismisses "Jevons paradox" answers from analysts as lazy, and warns the unwind will be as fast as the run-up if AI spending expectations aren't matched by real results — citing a possible repeat of 1929. The trigger: Kioxia warned the NAND price surge is ending, sending Sandisk plunging.
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