JPMorgan: AI chip stock rally may not be sustainable

Golden Finance reported that JPMorgan said AI chip stocks may find it difficult to outperform hyperscale cloud service providers in the long run. JPMorgan expects that either increased monetization of AI will help cloud service providers catch up, or massive spending in the AI sector may eventually suppress capital expenditures by hyperscale cloud providers, thereby weakening chip demand. Although JPMorgan leans toward an optimistic outlook, the potential slowdown in capital expenditure expectations remains a major risk for semiconductor stocks.
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