PremiumBelow we excerpt some of the most notable and interesting observations published in this morning Market Intel deck by JPM's resident in-house tech guru and TMT salesman, Mark Schilsky, author of the always enlightening Tech Sketch report (available here to pro subs).AI is the Only Trade in the Market - Still: The market remains bifurcated – either your company is an AI Winner (Semis) or an AI Loser (Internet & Software). On any given day, SOXX and IGV move in different directions. As such, most of my high level investor discussions focus on one major topic: when will the party end? Put another way, tech investors have made so much money in Semis so quickly that they are looking for potential warning signs that the music is about to stop. Predicting such an end is incredibly difficult. As such, investors are searching for forward-looking indicators that might suggest the AI party is nearing a peak. Two are worth highlighting:
JPMorgan: "AI Bills Are Out Of Control"
"Investment analysts, particularly at HFs, are using a ton of AI. I’ve run into numerous analysts whose personal token budgets reach tens of thousands of dollars with some even exceeding $100K. If you’re not using AI in your investment process today, you are falling behind."
159 words~1 min read
