JPMorgan Forecasts AI Sector to Lose Lead as Market Returns Driver in H2

Strategists note subsided momentum selling and oversold semis, predicting broader sector rotation. Positive earnings expected to stabilize tech, while geopolitical risks prompt buy-the-dip advice.

Woofun AI notes that JPMorgan Chase strategists, led by Mislav Matejka, assess that technology and artificial intelligence equities are unlikely to serve as the primary catalyst for market gains in the second half of the year. The team observes that selling pressure from momentum trades has largely dissipated, with semiconductor shares nearing oversold conditions.

The report states that "as earnings momentum remains positive, this should help stabilize the related stocks." Strategists anticipate market leadership rotating toward a wider array of sectors and reiterate recommendations to purchase on price declines, citing elevated geopolitical tensions.