JPMorgan Flags AI Trading Divergence Reminiscent of 1999 Dot-Com Bubble

According to JPMorgan's technical analyst Jason Hunter on July 2, the divergence within AI trading is reminiscent of the eve of the 1999 dot-com bubble. Hardware suppliers and semiconductor companies have surged, while major cloud giants like Microsoft, Meta, Alphabet, and Amazon—who are driving massive capital spending on chips and data centers—have lagged significantly. If these large cloud stocks fail to stabilize over the summer, the market could face sharper drawdowns in autumn, JPMorgan warned.
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