Clem Chambers warns AI, deficits will fuel 2-year Nasdaq bubble

Clem Chambers, CEO of Online Blockchain, said in an interview this week that U.S. markets have entered the early stage of a two-year Nasdaq bubble driven by heavy investment in AI infrastructure and by deficit-funded money printing.

He linked the rally to rapid expansion of AI capacity and to fiscal deficits that add liquidity. During the interview, gold traded near $4,700 an ounce; by May 17 it was around $4,540, a decline of roughly 3% over the prior week.

Chambers described gold as a live indicator of geopolitical risk around President Trump’s visit to Beijing and the unresolved Taiwan question. He said higher gold would signal a breakdown in talks, lower gold would signal meaningful private agreements, and a flat price would indicate little was resolved.

On market drivers, Chambers shifted focus from chipmakers and software to limits in physical infrastructure. He listed electricity capacity as the primary bottleneck, followed by copper supplies, industrial batteries, grid upgrades and backup power systems.

He pointed to rising demand for backup generators and long delivery queues for equipment, citing Caterpillar’s share price as market evidence. He also warned that copper supplies will be tight as infrastructure builds accelerate.

Chambers identified sectors likely to benefit from the build-out: cable manufacturers, silicon wafer producers and energy storage firms such as Enersys. He highlighted Cisco and Nokia as examples of companies being pulled higher by infrastructure demand, and said Nokia has been contracted by Nvidia to add AI functions to the backend of 6G network equipment.

On monetary policy and market stability, Chambers said the Federal Reserve has monitored the S&P 500 and taken emergency actions when the index approached levels the Fed viewed as systemic, citing interventions during an Iran-related market drop and the Silicon Valley Bank collapse.

He called the expanding U.S. fiscal deficit the largest long-term risk, saying the deficit is growing faster than credible offsets and will keep inflation elevated even if it does not destroy the dollar.

Chambers described the current phase as a transition into a multi-year Nasdaq bubble and advised investors to remain invested while rotating into companies that supply the physical build-out for AI, including firms tied to copper, power, cables and storage.