JPMorgan analysts pointed to investor position adjustments and improved valuations following the recent correction in AI-related stocks. They said opportunities to re-enter semiconductor stocks may be increasing.
In AI-related stock trading, investor positioning has improved following the recent global correction, and valuations are viewed as more attractive. It was particularly noted that opportunities to re-enter semiconductor stocks may be increasing.
The report assumes that technology stocks may not return to their previous levels of success, but says that many investment opportunities remain within the AI-related sector.
While positions in the AI sector are being unwound, capital investment remains firm. The report also suggested that trading could perform well going forward as overall market volatility declines.
Against a backdrop of solid fundamentals, semiconductor stocks are expected to rise through 2027, and the outlook remains for tight supply and demand to continue through 2028. Meanwhile, a cautious stance on software stocks has been maintained, with AI growth viewed as making the long-term outlook uncertain.