JPMorgan Strategists Expect AI Stock Selloff to Lose Momentum

A reduction in investor exposure may limit further losses in AI-related stocks, a JPMorgan team led by strategist Nikolaos Panigirtzoglou says.

Hedge funds and trend-following investors have largely unwound their sizable positions in semiconductor shares, the team said. Its measure of overall equity positioning has also dropped substantially from a mid-September peak, which the strategists say may constrain additional declines.

The team also views market concerns about financing the AI buildout as excessive.