JPMorgan Strategist: Investors Are Getting Smarter About AI Bets

A strategist at JPMorgan Asset Management says investors are getting better at telling the difference between AI's risks and rewards. AI has become a big theme across all kinds of assets and industries, but the market is no longer just buying everything AI-related.

The strategist believes demand for building and running data centers is more likely to hold up than demand for chips and hardware. There's a higher risk of too many chips being made, since investor excitement is mostly focused there. History shows that when excitement runs high, the market often moves too fast.

Recent stock moves back this up. SK Hynix shares have dropped over 20% from their June high, though they're still up more than double this year. The strategist says that as AI expands, investors need to figure out where to put their money—and that will be a big challenge ahead.