JP Morgan Says 25–30% Tech Stock Drop on August 5 Does Not Signal End of AI Investment Cycle

According to CNBC, JP Morgan said on August 5 that recent 25–30% declines in Asian technology stocks and the Philadelphia Semiconductor Index do not indicate the end of the AI investment cycle. The bank stated there are no fundamental indicators suggesting significant AI weakness over the next 6–12 months.

JP Morgan forecasts that hyperscalers will not reduce AI investments in 2027, and are likely to leverage equity and bond markets to fund AI infrastructure expansion. The bank identified semiconductor equipment manufacturers as the most favorably positioned subsector over the next 12 months amid accelerating wafer fabrication equipment investment.