AI TRENDS | JPMorgan Says AI Chip Stocks May Struggle to Outperform Hyperscale Cloud Providers Long Term

JPMorgan said artificial intelligence chip stocks may find it difficult to outperform hyperscale cloud service providers over the long term. According to Odaily, the bank expects either increased AI monetization will help cloud providers catch up, or heavy spending on AI could eventually curb hyperscalers’ capital expenditures, weakening demand for chips. JPMorgan said it leans toward the more optimistic scenario, but added that expectations of slowing capital expenditures remain a key risk for semiconductor stocks.