Don't just look at tech giants! Komo Strategist: Semiconductors, infrastructure and other sectors also have AI winners

The Zhitong Finance App learned that J.P. Morgan Private Banking strategist Madison Faller recently pointed out in an interview that investors should not only focus on large technology companies, but should also look at opportunities in the entire artificial intelligence (AI) industry chain.

“AI is not just a story about a single industry,” the bank's global investment strategist said in an interview. “We are more focused on assets that are more capital-intensive and more difficult to replace,” she said, with particular reference to the semiconductor, infrastructure, utilities and industrial sectors.

Faller believes that the strong performance of technology companies can coexist with overall profit growth in the market. She added that in the current earnings season, of the 11 industries covered by the S&P 500 index, 10 sectors are expected to achieve profit growth. According to LSEG IBES summary analysts' forecasts, the overall profit of the S&P 500 index for the second quarter is expected to increase by 23.4% year-on-year, a sharp increase from the 15.2% forecast at the beginning of the year.

The J.P. Morgan team expects the S&P 500 index's total return to rise close to 10% in the coming year.

At the same time, they expect large European stocks to achieve mid-single digit returns. Faller pointed out that given the improved fundamentals of the European banking sector and the continued increase in dividends and share repurchases, bank stocks in the region are worth watching.