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JPMorgan Says Investors' AI Exuberance Will Extend to 'Adopters'

Jun 12, 2024 - financialpost.com
JPMorgan Chase & Co. executive, Caroline Pötsch-Hennig, has suggested that investors should look beyond chipmakers and cloud computing providers, and focus on companies that are adopting artificial intelligence (AI) to transform their businesses. Speaking at a Bloomberg New Voices event in Frankfurt, Pötsch-Hennig, who leads JPMorgan’s private bank in Germany, stated that focusing solely on firms facilitating the creation of new AI models is not the right approach going forward.

The AI boom has led to significant share price increases for companies like Nvidia Corp. and Super Micro Computer Inc. However, a growing number of investors are now looking for other ways to invest in AI's potential. For instance, some of JPMorgan's trading clients are investing in commodities, anticipating that the infrastructure needed for AI technology will increase demand for energy and equipment.

Key takeaways:

  • Companies that use artificial intelligence to transform their business could be the next to benefit from investors’ exuberance for the technology, according to a top JPMorgan Chase & Co. executive.
  • Investors should not only focus on chipmakers or cloud computing providers but also on 'the adopters' of the new technology.
  • Some of the companies behind the AI boom have seen massive share price increases in recent months, with Nvidia Corp. recently notching a $3 trillion market capitalization.
  • A growing number of investors are looking for other ways to bet on AI’s potential, including commodities, anticipating that the infrastructure needed for the technology will bolster demand for energy and equipment.
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