On Thursday, Daniel Newman, CEO of The Futurum Group, dismissed fears of an AI bubble, pointing to Nvidia Corporation (NASDAQ:NVDA) partner WiWynn's massive backlog and warning that demand is so strong that factories can't be built fast enough.
WiWynn Says Orders Stretch Through 2027
Newman's comment came after Futurum analyst Ray Wang shared a report on X, formerly Twitter, by a website operated by Taiwan’s United Daily News.
The report cited WiWynn Chairwoman Emily Hong saying that the company's AI server backlog is so large that capacity remains insufficient despite plants in Taiwan and the U.S.
She highlighted that visibility into AI server orders stretches through 2027, with key customers steadily increasing their investments in AI infrastructure, reflecting a positive industry outlook.
WiWynn General Manager William Lin stated that major customers, including Nvidia, OpenAI, Oracle Corp (NYSE:ORCL), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms Inc. (NASDAQ:META), are aggressively ramping up investments in AI infrastructure.
Even with WiWynn's U.S. plant set to nearly double output by year-end, Lin said production will still fall short, forcing the company to scout for additional factory sites.
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Daniel Newman Says AI Bubble Concerns Are Misguided
Reacting to analyst Wang's post, Newman said, "$NVDA ODMs can't build factories fast enough to support the next two years of committed orders."
Industry Divided On AI Outlook
His remarks came amid growing debate over whether the current AI boom mirrors the dot-com bubble. Newman's stance reflects optimism that long-term infrastructure demand — particularly in servers, chips and data centers — will sustain growth rather than collapse.
Not all experts share Newman's view. Earlier this month, Meta CEO Mark Zuckerberg acknowledged parallels to the dot-com era, cautioning that overspending could trigger a correction.
OpenAI CEO Sam Altman has also admitted AI is in a bubble, calling it fueled by hype and inflated valuations.
Meanwhile, Wedbush analyst Dan Ives said fears of collapse are misplaced, describing AI as the "fourth industrial revolution" and claiming the industry is still in the "second inning."
Price Action: Nvidia's shares are up 53.76% over the last year and gaining 36.57% so far in 2025. On Thursday, the stock added 0.88%, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings place Nvidia's growth in the 97th percentile, highlighting its performance compared to leading AI peers such as META and Oracle.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
