It is supply and demand but chip supply isn't very elastic and the producers are conservative about adding capacity that won't be needed by the time it's online.
I mean, I want to double the the number of billions of dollars I have by 2031, doesn't mean I will. (actually I have 0 billion and double 0 billion is still 0 billion, so unlike them I'll accomplish that goal).
No. It doesn't have to be a bubble at all. It just has to be a cycle of rapid capital equipment build-out that returns to more normal levels in a few years.
Hard to believe that an industry making money hand over fist are reluctant to spend tens of billions expanding capacity that won't come online for years?
There have been SEVERAL crashes that have wiped out the market and it's the reason there are so few players, the rest of them went bankrupt after periods of over-expansion. (in the 80s caused by Japan, in 1997, in 2001ish after the dotcom bust)
You're even calling it a bubble so it's not exactly "hard to believe" it will pop.
