JP Morgan sees tech stocks regaining momentum as crowding eases
The bank says tech could recover some late-first-half lost momentum as valuations look more reasonable, earnings stay strong and crowding eases after a three-month pause.
JP Morgan strategists said technology stocks may regain some of the momentum lost in late 1H as crowded positioning eases, earnings remain firm and valuations appear more attractive. The team led by Mislav Matejka wrote on Monday that a three-month pause has helped clarify positions and that rising capex and sustained profit growth should support investors refocusing on the sector. JP Morgan said the outsized gains seen in 1H are unlikely to be repeated, while recent weakness reflects worries that heavy AI investment may fall short of optimistic return expectations.
The bank added that renewed demand for tech would likely benefit South Korean equities and indirectly support emerging-market stocks.