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JPMorgan warns AI leaders and chip stocks may diverge into year-end

The bank says the stock behavior resembles a late-1990s market split and that the next few weeks will be key for confirming whether AI leadership holds.

Reported · Written up by our desk · Sectors

MarketWatch reports that JPMorgan sees an echo of the late 1990s in how artificial intelligence winners are trading versus other parts of the tech supply chain.

The outlet says JPMorgan points to different price action between AI hyperscalers and chip and infrastructure stocks, a divergence the bank frames as a classic market setup.

MarketWatch adds that JPMorgan is flagging the next few weeks as critical, implying investors should watch for whether the split widens or narrows as trading progresses.

The warning centers on sector rotation risk, not a single company, according to the account in the report.

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