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A JPMorgan strategist team put forward a judgment that the AI stock selloff is expected to ease after investors sharply cut positions. A report dated October 22, 2026, showed that the team said in the report that the risks of the neocloud financing model are not enough to shake the overall AI capital expenditure cycle; globally listed technology companies are expected to generate about $2.2 trillion in operating cash flow this year, with capital expenditure and R&D spending totaling about $1.8 trillion, leaving a surplus of about $400 billion after offsetting. The report also said that even if neocloud financing runs into trouble, their construction gap can be filled by companies such as hyperscale cloud service providers with stronger balance sheets. A report on October 23 further said that since mid-September the global equity positioning structure has been significantly reset, and hedge funds and CTAs have basically finished reducing their previously elevated long positions in semiconductors. At present, this judgment remains the strategists' view, with no subsequent market results yet to corroborate it.
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JPMorgan: Global AI Stock Selloff May Be Nearing Its EndDevelopments
1 confirmed developments
JPMorgan strategists say AI stock selloff is expected to ease
Source:Wallstreetcn
Reports and discussion timeline
Browse reports and discussion by time. Their evidence levels remain distinct.
Oct 23
Cailianshe
JPMorgan: Global AI Stock Selloff May Be Nearing Its End
JPMorgan strategist Panigirtzoglou said in a latest research report that the recent selloff in AI-related stocks may be nearing its end, and the global equity holdings structure has been significantly reset since mid-September. Listed technology companies worldwide are expected to generate about $2.2 trillion in cash flow this year and about $1.8 trillion in capital expenditure, with the sector overall having about $400 billion in financing surplus, enough to cover capital expenditure. Hedge funds and CTAs have basically finished reducing their previously elevated long positions in semiconductors.
Oct 22
Wallstreetcn
JPMorgan: New Cloud Providers' Financing Pressure Won't Shake AI Infrastructure Cycle; Tech Sector Still Has $400 Billion Surplus This Year
JPMorgan said in its report that the risks of new cloud providers' financing models are not enough to shake the overall AI capital expenditure cycle. Global listed tech companies are expected to generate about $2.2 trillion in operating cash flow this year, with capital expenditure and R&D spending totaling about $1.8 trillion, leaving a surplus of about $400 billion after offsetting the two. The report said that even if new cloud providers run into financing difficulties, their construction gap can be filled by companies with more robust balance sheets, such as hyperscale cloud service providers; under a stress scenario, even if capital expenditure rises 25% per year through 2030 and cash flow grows 20%, the tech sector will still maintain a small surplus.