JPMorgan Strategists: AI Stock Selloff Likely to Ease After Investors Sharply Cut Positions

Odaily reports: JPMorgan strategists believe that market concerns over financing the AI buildout are overdone, and given that investors have already significantly reduced related positions, the recent selloff in AI-related stocks may gradually lose momentum.

The strategist team led by Nikolaos Panigirtzoglou wrote that investors' previous heavy bets on semiconductor stocks have largely been unwound, including those of hedge funds and trend-following investors. Their gauge of overall equity positioning has also fallen significantly from its mid-September peak, which may limit the scope for further declines.