AI-linked stocks are starting to resemble a market pattern seen in the 1990s, according to JPMorgan, which says the coming weeks could be pivotal for investors. The warning points to a growing split in how the market is treating major technology names tied to artificial intelligence and related growth themes.
The concern is that recent weakness may not be just a routine pullback. JPMorgan’s strategist flagged the possibility of a deeper and more troubling unwind, suggesting that sentiment around high-profile AI and tech trades could shift quickly if upcoming results and market reactions continue to disappoint.
That backdrop was reinforced by the latest earnings response involving Alphabet and Tesla. Although both companies reported this week, the market reaction was described as chilly, highlighting how investors may be raising the bar for large-cap growth companies even when they remain central to the broader technology narrative.
For now, the focus is on whether the AI trade can keep its leadership or whether the market moves into a more selective phase. If the current divergence widens, it could shape near-term trading across tech stocks and set the tone for the next stage of the market’s AI-driven run.
