Futurum CEO Daniel Newman Calls Current AI Market Multi-Decade 'Supercycle,' Not A Bubble— But Sudden Glut 'Could Become A Risk'

In a recent interview with Schwab Network, Daniel Newman, CEO of Futurum, dismissed the notion of a bubble in the current AI market.

AI Hype vs Real Revenue Drivers

Newman, a prominent tech industry analyst, spoke to host Marley Kayden on Thursday and asserted that the current AI market is not in a bubble, but rather in a “multi-decade technological supercycle.”

He acknowledged that certain factors might give the impression of a bubble, such as companies overusing the term “AI” in their earnings calls, leading to inflated valuations or companies that are overspending without generating real AI revenue, yet branding themselves as AI plays.

However, Newman emphasized that the core infrastructure companies, such as Nvidia (NASDAQ:NVDA), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT), are driving real revenues and are not part of any bubble.

Newman also highlighted the current focus on infrastructure build-out and the potential for AI monetization in enterprise, particularly in agentic use cases. He suggested that 2026 will be a “real year of proof” for the AI trade, as it will reveal the revenue generated by the current capital expenditure (CapEx) in the AI sector.

He also pointed out that the current AI trade is heavily reliant on revenue from companies like OpenAI and Anthropic, but the real AI monetization opportunity lies in enterprise and its potential to drive economic growth.

That being said, he pointed out that there could be a constraint on the supply side and that could “become a risk.” He added, “where the bubble really could exist is if all of a sudden we had a glut, the demand for utilization goes down, and the use cases don’t take off.”

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AI Bubble Debate Divides Analysts

Newman’s comments come amid a wider debate about the state of the AI market. Google DeepMind CEO Demis Hassabis recently cautioned that some AI startups are overvalued, potentially signaling a market correction.

However, Goldman Sachs Asset Management has argued that the AI trade is structurally sound, with the majority of the sector’s infrastructure buildout being funded by corporate cash flows, not risky borrowing.

Despite the differing opinions, the question of whether the AI market is in a bubble remains a top concern for investors. Newman’s perspective, as a respected industry analyst, adds an important voice to this ongoing debate.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.