Everyone Dumped AI. The Fundamentals Didn't
Positioning has reset, but the fundamentals haven't
JPM argues that while semiconductor stocks have undergone an aggressive deleveraging, several of the key drivers underpinning the AI investment cycle continue to improve. Memory prices continue to rise, AI capex expectations keep moving higher, and AI compute economics have begun to improve. Together, they strengthen the case that the recent semiconductor sell-off has been driven more by positioning than deteriorating fundamentals.