JPMorgan's analysis suggests that artificial intelligence stocks are unlikely to recover in the near term, according to a strategist at the bank. The assessment points to three key factors weighing on the sector's prospects.
The strategist cited low short positions in the market, the end of corporate share buyback programmes, and what the bank described as excessive long positions among investors. These conditions, JPMorgan said, are not conducive to a recovery in AI-related stocks.