AI chip winners may face tougher road ahead as hyperscalers catch up: JPM
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AI chip winners may face tougher road ahead as hyperscalers catch up: JPM Sam Boughedda Thu, July 2, 2026 at 7:32 AM EDT 1 min read JPM Investing.com -- The sustained outperformance of semiconductor stocks relative to hyperscalers may be difficult to maintain, according to JPMorgan, which said the gap in performance between AI chip makers and cloud providers "appears somewhat unsustainable in the long run." In a note to clients on Thursday, analyst Nikolaos Panigirtzoglou outlined two scenarios under which the performance gap could narrow. In the positive scenario, hyperscalers, AI model providers and end-users begin to see improvements in monetization, revenues and earnings, allowing them to "catch up, capturing a bigger share of the overall AI value-added pie." In the negative scenario, semiconductor outperformance comes at the direct expense of customers such as hyperscalers and AI model providers, which could "start to depress capex intentions" and "eventually act as a headwind to demand for the semiconductor companies' products." JPMorgan said its house view favors the more positive outcome. However, the bank noted that the consensus among bottom-up analysts points to "a sharp deceleration in hyperscalers' capex growth from next year onwards," which it said, "taken at face value would tilt towards the negative scenario." Semiconductor stocks, including AI chip and memory makers, have outperformed hyperscalers almost continuously since last September, a trend JPMorgan now views as a potential source of vulnerability for the sector. On broader macro and crypto markets, JPMorgan said U.S. money creation is on track to increase from $1.6 trillion in 2025 to $1.8 trillion in 2026, and flagged that MicroStrategy has "introduced avoidable two-way risk into crypto markets inducing more uncertainty and volatility." AI chip winners may face tougher road ahead as hyperscalers catch up: JPM These 2 stocks are best positioned to benefit from higher uranium prices: analyst Nvidia's new Alpamayo project: What it means for Tesla?
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