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      AI Sector Sees Stagnation Amid Rising DRAM Prices

      Jurrien Timmer, Global Macro Director at Fidelity Investments, has reported that trading activity in the artificial intelligence (AI) sector has remained stagnant for over three months. Timmer noted on platform X that metrics he monitors, including token spending and GPU rental rates, have either remained flat or declined during this period. In contrast, prices for dynamic random-access memory (DRAM) have continued to rise, indicating a divergence in market performance within the tech sector.

      Despite the current stagnation, Timmer expressed optimism about the long-term potential of AI, suggesting it could lead to significant productivity improvements and alter economic dynamics. He believes that AI may eventually increase the non-inflationary speed limit of the economy, which could help sustain global debt levels. However, he cautioned that the current investment landscape remains inflationary, and the returns on the substantial investments made in computing power are still uncertain.

      Timmer highlighted that corporate equity and debt capital demand is escalating, with a growth rate of approximately $3.3 trillion. This increase underscores the ongoing financial commitment to AI and related technologies, even as immediate returns appear elusive.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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