TREE NEWS reports: JPMorgan global markets strategist Dubravko recommends going long on stocks that have outperformed over the past 12 months and shorting those strong over the past three months, effectively betting tech will beat energy and defensive sectors. He said the AI supply chain’s upstream segment offers an attractive buying point after a concentrated selloff, while large cloud service providers have limited near-term upside but should benefit mid-term from tighter computing supply improving pricing power, margins and cash flow.
JPMorgan Strategist Sees Buy Opportunity in AI Supply Chain After Selloff
The signal here is a strategist explicitly framing a momentum reversal — buying last year's winners and shorting the past quarter's leaders — which implicitly treats the AI selloff as rotation rather than regime change. That distinction matters most for upstream AI supply chain names, where the call rests on a concentrated drawdown rather than a fundamental break. The cloud-provider view is the more interesting tell: near-term upside is seen as limited, with the mid-term case hinging on tighter computing supply lifting pricing power. Whether that supply dynamic actually materializes is the open question.
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