JPMorgan delivers shock verdict on the stock market | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

JPMorgan CIO Bob Michele wasn’t reading the room in his interview with CNBC, which is exactly what makes his take so striking.

Although investors have spent the past couple of weeks or so worrying that the market may have finally run out of steam, the firm’s chief investment officer (CIO) feels the economy is significantly better off than market sentiment suggests.

He argues that the AI boom is not a bubble, which is in sharp contrast to the charts that have been flashing red lately.

As of Monday, Nov. 17, 2025, the S&P 500 is still tracking over 13.4% YTD, while the Nasdaq has gained nearly 17.6%, and the Dow sits near a 9.5% surge.

Moreover, over the past month, the S&P has essentially remained flat, while the Nasdaq slipped by just over 1%, and the Dow drifted lower.

The recent sluggishness only amplified the jitters Michele dismisses.

JPMorgan says AI isn’t a bubble, thanks to real spending.

Shutterstock-Yu Xichao

JPMorgan CIO breaks from the market mood

While the headlines continue flashing red, Michele points to an economy that’s holding up a lot better than investors realize.

His audacious view is backed by steady consumers, corporate earnings that continue to absorb the hits, and demographics entering prime spending years.

More Wall Street:

As he puts it on CNBC, “I’m going to be the professional optimist today and say we’re in a pretty good place.”

He even doubled down on the policy backdrop, noting, “We do expect the Fed to come in and cut rates in December.”

It’s exactly the kind of quiet bullish macro read that hasn’t gotten nearly as much airtime.

JPMorgan remains optimistic about growth, and rate cuts should help

Michele’s tone stands in complete contrast to the market’s recent jitters.

Instead of dwelling on the volatility, he discussed what he believes is the real backdrop, based on a structured, data-driven case that investors might not be factoring in at this point.

He also contrasts the current market setup with the dot-com boom and bust, where he argues that the bulk of the money was being poured into ideas that never produced any real returns, leaving investors with empty promises after the bubble burst.

Takeaways from Bob Michele’s CNBC interview:

He’s openly optimistic: “I’m going to be the professional optimist today and say we’re in a pretty good place.”
He feels the U.S. economy is gliding into year-end: Consumers remain steady, as corporate America continues to absorb tariffs rather impressively, and growth is holding up.
Demographics are a big tailwind: The 1991 birth cohort, which is now at 34, is perhaps the largest, driving earnings, spending, and saving.
Fiscal policy is highly supportive: Governments are “borrowing and spending,” while building a strong and stimulative backdrop with the December rate cut as a major tailwind, not a recession warning.
CapEx is gearing up, especially for AI: Every business Michele mentions is looking to dish out more on hiring and AI build-outs. He argues that the current cycle is backed by genuine corporate investment, unlike what happened in the dot-com era.

AI capex is fueling the economy, not a bubble

Stripping away all the noise, the most imperative thing to recognize in the AI boom is that rather than being built on hope, it rests on checks that are actually clearing.

Amazon, Microsoft, Alphabet, and Meta are shelling out nearly $300 billion into capex next year, primarily aimed at data centers, networking gear, and AI chips.

For instance, Meta just bumped its 2025 spending outlook to $70 to $72 billion, expecting even loftier numbers next year, while reporting $51.2 billion in quarterly sales.

Alphabet also lifted its 2025 capex target to $91 to $93 billion, led by a record 33% revenue jump.

On top of that, the macro data is starting to reflect.

S&P Global estimates AI-related activity contributed 0.5 percentage points to Q2 GDP, while another report added that AI investment drove 80% of U.S. private demand expansion in the first half of 2025.

Adoption has also been growing, as Stanford estimates U.S. private AI investment at a whopping $109.1 billion, with an impressive 78% of businesses using AI.

That’s why Michele is drawing a hard line between today and the dot-com era, with today’s cash-rich giants building for demand that’s essentially already here.