Growing concerns are emerging about a potential bubble in the AI sector of the stock market, with Nvidia (NASDAQ: NVDA) being particularly vulnerable. The company relies heavily on AI-related revenue, with 90% coming from data centers. However, not all of this spending is AI-related, which may prevent a complete collapse.

Nvidia is a major player in the AI sector, deriving most of its business from GPUs used in AI-related activities. Despite worries about an AI bubble, the company’s data center division also serves non-AI cloud workloads, engineering simulations, and drug discovery. The true impact of an AI bubble remains uncertain, but investors should monitor the situation closely.

There are concerns about a potential AI bubble resembling the dot-com crash of the early 2000s. Despite some similarities, companies like OpenAI are not the only players in the AI market, and there are real cash flows supporting AI infrastructure buildout plans. The key issue is whether AI can be monetized effectively to sustain the current level of spending and growth.

Read more at Nasdaq: The Most Vulnerable AI Stock if the Bubble Pops