In a recent interview with Schwab Network, Daniel Newman, CEO of Futurum, dismissed the notion of a bubble in the current AI market.

AI Hype vs Real Revenue Drivers

Newman, a prominent tech industry analyst, spoke to host Marley Kayden on Thursday and asserted that the current AI market is not in a bubble, but rather in a “multi-decade technological supercycle.”

He acknowledged that certain factors might give the impression of a bubble, such as companies overusing the term “AI” in their earnings calls, leading to inflated valuations or companies that are overspending without generating real AI revenue, yet branding themselves as AI plays.However, Newman emphasized that the core infrastructure companies, such as Nvidia (NASDAQ:NVDA), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT), are driving real revenues and are not part of any bubble.