JPMorgan warns the AI trade lacks fuel for a July-style rebound

The bank's strategists say the forces that rescued chip stocks over the summer are missing this time around JPMorgan has a message for anyone waiting for AI stocks to bounce back the way they did over the summer: don’t hold your breath. In an October 14 report on capital flows and liquidity, the bank’s Global Markets Strategy team argued that the conditions behind July’s recovery in AI infrastructure names are currently absent. Without them, the strategists see a rapid rebound as unlikely. The report comes from the team led by strategist Nikolaos Panigirtzoglou. It focuses on the ongoing slide in AI infrastructure stocks, with memory chips taking a particularly hard hit. To understand the warning, you have to rewind to July.

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