Nvidia shares extended their recovery on Monday, Sept. 21, as renewed enthusiasm around artificial intelligence lifted semiconductor stocks. NVDA closed at $227.38, up 2.3% for the session, after touching an intraday high of $228.50. The stock has now rebounded nearly 9% from its Sept. 14 low of $208.93.

The recovery 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 in 2027, adding another reference point for expectations around data-center investment across the technology sector.

Dimon Sees AI Spending Exceeding $1 Trillion in 2027

The JPMorgan chief executive said the AI boom has more room to run. In his view, the top hyperscalers — Microsoft, Google, Meta Platforms and Amazon — will collectively spend more than $1 trillion on the data center industry in 2027, a sharp increase from this year's planned $750 billion, or roughly a third more in annual outlays.

The projection aligns with other recent forecasts, including a widely cited estimate by PwC, which projected that spending will reach $32 trillion by 2050.

Surging data-center outlays are a significant tailwind for Nvidia, which supplies the most advanced chips underpinning the AI buildout. All four of the largest US hyperscalers use Nvidia chips, and together they account for nearly 50% of the company's revenue.

Nvidia is also benefiting from rising demand for its Blackwell chips. Over the next few years, most of its growth is expected to be driven by the Vera Rubin line, which is more advanced than Blackwell. At the same time, the company aims to capture part of the AI agent boom through its CPUs, which it expects to begin generating substantial revenue in the coming quarters.

Dimon's comments arrived as concerns about the pace of AI development persist. Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and SpaceX CEO Elon Musk have all warned about the state of the industry and urged a slowdown in the sector.

Nvidia's Revenue Growth to Continue

Nvidia's most recent financial results showed the business continuing to expand. Second-quarter revenue surged 106% to $96.2 billion, with the data center segment reaching $89 billion. The growth was notable given that the company was generating little revenue from China — historically one of its most important markets and one of the largest countries in the AI space — and it expects its Chinese business to produce no meaningful revenue this year. That gap leaves the capital plans of the four largest US hyperscalers — the customers already driving nearly half of Nvidia's revenue — carrying added weight in the company's growth outlook.

Analysts remain highly bullish on the company's stock and its revenue growth, an outlook that would accelerate if Dimon's prediction comes true. The average estimate calls for annual revenue to jump 90% this year to more than $411 billion, with the final figure potentially reaching $425 billion.

In its recent earnings report, Nvidia indicated that it expects annual revenue next year to exceed $700 billion, an increase of more than 70% from this year. Profits are also projected to keep rising, with GAAP earnings per share expected to climb to $9.31, up sharply from last year's $4.70. Those targets give investors concrete markers to track in the quarters ahead, with each earnings report offering a progress check against the stated numbers.

The rally has come even as the stock trades at a forward price-to-earnings ratio of 22, which the report described as a bargain valuation.

Nvidia Stock Technical Analysis

The daily chart shows NVDA has rallied in months, climbing from a low of $164 in March to about $227, and recently bottomed at $209 on Sept. 14 before rebounding. The stock has remained above its 50-day and 100-day exponential moving averages (EMA), a sign that buyers remain in control, while the relative strength index (RSI) and the MACD have continued rising.

The analysis points to the $236.54 all-time high coming back into focus before any potential move toward the psychological $250 level, with a breakout above the record high needed to confirm such a surge.

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.

Source: The Market Periodical