Nvidia Stock Rebounds as Dimon Sees AI Spending Topping $1T

Nvidia stock extended its recovery on Sept. 21 as renewed enthusiasm around artificial intelligence lifted semiconductor shares.

NVDA closed at $227.38, up 2.3% for the session, after reaching an intraday high of $228.50. The stock has now recovered almost 9% from its Sept. 14 low of $208.93.

The rebound comes against a broader backdrop of rapidly expanding AI infrastructure spending. JPMorgan CEO Jamie Dimon has projected that annual AI capital expenditure could exceed $1 trillion next year, adding another reference point for expectations around data-center investment.

Jamie Dimon Makes a $1 Trillion AI Prediction

JPMorgan’s CEO believes that the AI boom has more room to run. In a statement, he believes that the top hyperscalers like Microsoft, Google, Meta Platforms, and Amazon will spend over $1 trillion in the data center industry next year.

This increase will be a big surge from this year’s $750 billion plan. This view confirms other recent predictions, including a highly cited one by PWC, which estimated that spending will jump $32 trillion by 2050.

This surging spending is highly bullish for Nvidia because of its role in the AI space, where it provides the most advanced chips. All the Big Four companies in the US use Nvidia chips and account for nearly 50% of Nvidia’s revenue.

Nvidia is benefiting from the rising demand for its Blackwell chips. In the next few years, most of the growth will be driven by Vera Rubin chips, which are more advanced than Blackwell.

At the same time, the company hopes to benefit from the AI agent boom by launching its CPUs. These CPUs will start generating substantial sums of money in the coming quarters.

Jamie Dimon’s statement came at a time when concerns about the AI industry is continuing. Some top executives like Anthropic’s Dario Amodei, OpenAI’s Sam Altman, and SpaceX’s Elon Musk have all warned about the state of the industry. They have all urged for a slowdown in the sector.

Nvidia’s Revenue Growth to Continue

The most recent financial results showed that Nvidia’s business continued growing in the second quarter. Its revenue surged by 106% in the second quarter to $96.2 billion, with its data center segment hitting $89 billion.

This growth was notable because it was not generating significant revenue from China, one of the largest countries in the AI space. The company also expects its Chinese business to generate no meaningful revenue this year.

Analysts are highly bullish on the company’s stock and its revenue growth, a move that will accelerate if Jamie Dimon’s prediction comes true. The average estimate is that its annual revenue will jump by 90% this year to over $411 billion. The real figure will be higher than that, potentially to $425 billion.

In the recent earnings report, Nvidia announced that it estimates that its annual revenue for next year will be over $700 billion, up by over 70% from this year. Its profits are also expected to continue rising, with the GAAP earnings-per-share rising to $9.31, up sharply from last year’s $4.7.

All this is happening as the company becomes a bargain, with its forward price-to-earnings ratio being 22.

Nvidia Stock Price Technical Analysis

The daily chart shows that NVDA stock has surged in the past few months, moving from a low of $164 in March to $227. It recently bottomed at $209 on September 14 and then rebounded.

The stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control. Also, the Relative Strength Index (RSI) and the MACD have continued rising.

Therefore, the stock will likely continue to rise, potentially reaching the psychological level of $250. This surge will be confirmed if it moves above the all-time high of $236.

This article is for informational purposes only and does not constitute financial or investment advice. Analyst estimates and technical targets do not guarantee future market performance.