AI stocks whipsawed this week as warnings of a budding bubble grew louder despite Nvidia’s strong results. Alphabet CEO Sundar Pichai cautioned that industry investment may be overshooting even as he pressed the case for aggressive spending on compute to meet cloud demand, after Google briefly eclipsed Microsoft by market value on renewed momentum from its Gemini 3 launch and updated AI image tools. Nvidia topped expectations but unnerved investors with signs that geopolitics are biting: CFO Colette Kress said large China orders failed to materialize amid rising competition and export restrictions. Some industry voices argued Western policy toward Chinese AI poses the biggest challenge to Nvidia’s dominance, underscoring how the AI trade now hinges as much on supply, policy, and compute scarcity as on model breakthroughs.
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