28.10.25 - AI ecosystem - to the sky and beyond

The AI ecosystem continues to expand at full speed. The latest example: Nvidia taking a stake in Nokia — a move that highlights how deeply intertwined the global AI network of investments and partnerships has become. At the center stands OpenAI, surrounded by the major players Microsoft, Broadcom, AMD, Google, Meta, and an ever-growing circle of smaller partners and suppliers.

Yesterday, Qualcomm joined the AI race by unveiling a new AI chip for data centers, positioning itself to compete directly with Nvidia, AMD, and Intel. The company hopes to secure a share of the booming demand for AI infrastructure and training capacity — but the question remains: when will it be truly welcomed into the “AI circle”?

Markets: US Tech stocks extended their recent gains - Europe weak

• Qualcomm: jumping more than 20% yesterday - partly giving up gains

• Nokia: jumping 20%

• Nasdaq: new records up almost 2% yesterday and 0.5% today

• Chip sector: on fire by the news

My View: The arrival of a new competitor is rarely a good sign mid-term. Competition tends to push prices down, compress margins, and eventually hurt earnings growth. While investors still celebrate every AI headline, the fundamentals suggest that the risk-reward balance is shifting.

I do not follow the investor crowd here. The ample warning light in the tech sector has switched to red — a correction would not only be healthy but likely inevitable.

Become a member to access more valuable market updates like this