In a wide-ranging interview with CNBC's Leslie Picker on Monday, he said candidly: JP Morgan Chase (NYSE:JPM) CEO Jamie Dimon cited the growing interest in all things artificial intelligence (AI) and the debate over whether this technology is more hype than substance.
Some market commentators have begun to suggest that there is a bubble in AI stocks, bigger than the dot-com bubble of the late 1990s. Mr. Dimon flatly refuted this claim, saying there was no comparison.
Dimon told Picker on CNBC.
When the internet bubble first started…it was all hype. This is not an exaggeration. It's real.people are deploying [AI] They vary in speed, but can do a huge amount of processing.
He went further, claiming that generative AI could eventually be “used for almost every job” and even treat cancer “because it can do things that the human mind cannot do.”
One AI stock to buy
If Dimon's view is true, investing in AI-related ventures could be profitable. If he could buy just one stock to capture accelerating AI adoption, it would be this one. Nvidia (NASDAQ:NVDA). The company developed graphics processing units (GPUs) that render lifelike images in video games, then adapted the technology to withstand the rigors of AI. Parallel processing, which divides large computational jobs into smaller, more manageable chunks, works just as well in AI as it does in games.
Additionally, Nvidia is expanding beyond the processor itself, offering turnkey AI systems that include the chip. and Software that makes them more efficient. Cloud and data center operators are scrambling to modernize their systems to accommodate the massive influx of AI, with upgrade cycles potentially costing more than $1 trillion. Additionally, his Nvidia, which has an estimated 95% share of the GPU data center market, is likely to gain the most.
When in doubt, consider the following: In the fourth quarter of 2024 (ending January 28), Nvidia's revenue increased 265% year-over-year to $22.1 billion, and adjusted earnings per share increased 486% to $5.16.
That's why Nvidia is the only stock to buy empty-handed to profit from the AI ​​boom that Jamie Dimon acknowledges.
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JPMorgan Chase is an advertising partner of The Motley Fool's Ascent. Danny Vena He has a position at Nvidia. The Motley Fool has positions in and recommends JPMorgan Chase & Co. and Nvidia. The Motley Fool has a disclosure policy.
Unlike the internet bubble, AI is “not a hype,” says JPMorgan CEO Jamie Dimon. If he's right, Hand Over Fist is one stock to buy.Originally published by The Motley Fool