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Rallying Chip Stocks Reignite AI Bubble Debate

June 02, 2026 at 10:05 AM EDT

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

Companies making AI chips have registered a major rally in the prices of their shares, and this has added momentum to the growing debates about whether or not these surges are fueling an AI bubble that could burst anytime.

How long will this demand continue? Bears say as more tech giants take on more debt to finance their capital expenditure, things are becoming increasingly frothy and a peak could be reached. When that peak and eventual burst comes is subject to debate, and semiconductor titans like Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) are probably doing their own calculations even as they…

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