The artificial intelligence, AI rally could stop if the hyperscalers Amazon, Alphabet, Microsoft, Meta and other large technology companies lie NVIDIA, Oracle start depreciating on a faster scale their investments in AI infrastructure or data centers, according to Wolfteam Ltd.'s projections and estimates.
As far as there is public information, Amazon, Alphabet, Microsoft, Meta, NVIDIA and Oracle are depreciating their artificial intelligence, AI data centers assets on a 20 year time scales.
If a company like NVIDIA and Alphabet makes a jump in the development of Graphical Processing Units and Computer Processing Units chips used for AI processing, this could cause the AI chips replacement cycle to fall to 5 years. This quickly render the AI data centers built by Amazon, Alphabet, Microsoft, Meta obsolete in several years instead of the current twenty years. Amazon, Alphabet, Microsoft, Meta together currently invest more than 100 billion USDs in AI data centers build out per quarter. If these data centers investments become quickly obsolete Amazon, Alphabet, Microsoft, Meta could lose in excess of 300 billion USDs per year.
Amazon, Alphabet, Microsoft, Meta are highly profitable each making 60 billion USDs or more in net profit per year. But if Amazon, Alphabet, Microsoft, Meta via AI data center deprecation start realizing more than 300 billion USDs in losses per year, this could make their market capitalization fall by more than 55 %. Such a development could drag the whole global stock market with the Nasdaq Composite falling more than 62 % from its current levels, the S&P 500 could fall more than 44 % and the Dow Jones Industrial Average could fall more than 38 % from their current levels, according to Wolfteam Ltd.'s projections and estimates.
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