Cherney: Chip industry likely faces overcapacity and severe cyclical downturn
Max Cherney · Can NVIDIA Keep Its Lead? — With Anissa Gardizy, Max Cherney, and Lauren Goode · Jul 10, 2026 · at 2:23
Reuters semiconductor reporter Max Cherney analyzes the market risks of massive AI infrastructure and chip factory buildouts.
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“Very likely, I would say that we're going to lead, we're going to see some over capacity essentially. So like people are building, especially memory companies are building tons of factories right now. And typically the chip industry is, again, I'm sure everybody in this room knows tends to be cyclical. So the whiplash from this one might be pretty bad depending on exactly when it comes to an end, if it does.”
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