Global AI trade could revive after recent pullback, J.P. Morgan says

J.P. Morgan analysts predict a resurgence in global AI trade, following a recent downturn, according to a report released on September 28. The brokerage believes that improved investor positioning, attractive valuations, and strong capital spending will drive renewed interest in the sector, particularly in semiconductor stocks. While AI stocks experienced a decline earlier this month due to concerns over capital expenditures and immediate returns, J.P.

Morgan remains bullish on semiconductor stocks, citing robust fundamentals and pricing growth into 2027. The firm remains cautious on software, however, as AI growth continues to impact the sector's long-term outlook and competition intensifies.