NVIDIA sees a $200 billion opportunity and Big Tech is spending like crazy — buy the AI toll collector
NVIDIA says the market for CPUs is worth $200 billion including China, and the company has already banked nearly $20 billion in profit in just five months. Meanwhile, the biggest tech companies are preparing to spend unprecedented sums on AI infrastructure, and JPMorgan says this is kicking off an earnings 'supercycle.'
Idea
NVIDIA's CEO is pitching 'insane' returns to billionaire investors and the numbers back it up — $20 billion in profit in five months from a business most people don't associate with NVIDIA. The $200 billion CPU market forecast including China signals massive untapped revenue. On top of that, Meta, Microsoft, Amazon, and Alphabet are about to unleash a wave of AI spending that flows directly into NVIDIA's pockets. JPMorgan is calling this an earnings supercycle. When the biggest tech companies in the world are all spending aggressively on the same thing, NVIDIA is the toll collector.
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News sources
- JPMorgan's Lipikhina Sees Earnings Supercycle Driving US Stocks — Bloomberg
- NVIDIA (NVDA): Forecast of $200 Billion Market for CPUs Includes China, Reports CNBC — Yahoo Finance
- Nvidia Has Racked Up a Nearly $20 Billion Profit Over the Last 5 Months From an Unlikely Source — Yahoo Finance
- Meta, Microsoft, Amazon, and Alphabet are about to spend a shocking amount of money to dominate the AI era — Yahoo Finance