During the DBS Asia Future Forward Conference, Broadcom CEO Hock Tan and Intel CEO Lip-Bu Tan highlighted that the rising cost of capital could hinder investments in AI infrastructure, which is crucial for meeting the surging demand for computing power.
Tan pointed out that financing challenges might overshadow semiconductor shortages, as technology companies face increasing borrowing costs that complicate funding for data centers and chip acquisitions. Both executives acknowledged that while the industry has experienced supply bottlenecks, they expect some relief as production capacity increases.
However, they emphasized that sustaining growth in AI will depend on businesses demonstrating tangible returns from their investments.
The executives remain optimistic about near-term demand, predicting that the imbalance between supply and demand for computing infrastructure could persist until at least 2029 or 2030, but they cautioned that future growth could slow if advanced AI adoption does not meet expectations