JPMORGAN: DIVERSIFY AI BETS AMID TWO CYCLES

Sundar, head of alternative investment strategy at JPMorgan Private Bank, told Bloomberg that the tech industry is experiencing simultaneous AI cycles, creating what she calls "healthy" tumult in valuations and market sentiment. The dual cycles create both risk and opportunity. Rather than concentrating on specific AI subsectors, Sundar recommends a diversified approach spanning the entire AI value chain—from chip manufacturers to software developers to infrastructure providers. This strategy hedges against sector-specific downturns while capturing gains across multiple segments as both cycles mature. The current volatility, Sundar argues, reflects normal market behavior during periods of technological transition rather than fundamental weakness in AI prospects. The comments suggest major institutional investors are viewing present market conditions as an entry point for balanced AI exposure, not a signal to reduce exposure to the sector.