Chip stocks fell Monday after Broadcom CEO Hock Tan and Intel CEO Lip-Bu Tan warned that financing costs and uncertain returns could become major constraints on artificial-intelligence expansion.
Speaking at an AI-focused conference in Singapore, Hock Tan said capital could prove a bigger obstacle than shortages of processors, memory chips or electricity.
The executives remained positive about near-term demand for AI computing infrastructure, but their comments weighed on the sector.
Hock Tan also criticized investors who set extreme expectations without fully understanding the businesses they are backing, comparing that behavior with casino gambling. The conference brought together about 700 business leaders, entrepreneurs and investors to discuss AI, technology and capital flows, with the two chip executives participating in a discussion about where future AI value could be created.