SemiAnalysis: Data Centers May Face Oversupply Risks by 2028

Jeremie Ontiveros, head of data center and energy research at semiconductor research firm SemiAnalysis, stated that there is currently a certain degree of chip oversupply in the market, making it easier to obtain GPUs than to secure power for data centers. Forecasting for data centers is relatively straightforward, as infrastructure signals can be tracked in advance, while the chip supply chain is more volatile. Looking ahead to 2026 and 2027, the market shows strong energy responsiveness. Ontiveros warned that by 2028, supply chain risks could reverse, leading to potential oversupply risks for data centers. Currently, the industry is more concerned about oversupply of data services than chip oversupply, and the pace of expansion in the chip supply chain will be a key indicator to monitor closely in the future. This expansion is a strong positive signal for capital expenditures, including investments in new semiconductor fabs and the purchase of new equipment.

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