Bloomberg Surveillance · Thursday, July 9, 2026
JP Morgan Asset Management believes a leadership rotation in the markets, currently concentrated in tech hardware and chips, is set to materialize more durably over the next 12-18 months. This shift is expected as companies across all sectors integrate AI and productivity benefits become more widespread. The firm sees this as a move towards a more balanced market after a period of one-way trading.
“So up until this point, the leadership obviously has been concentrated in the tech trade and more specifically the hardware side of things, the chip side of things. When we zoom out and we take a twelve to eighteen month view, we do think that this rotation is going to begin to materialize in a more durable way.”
“But you know, every company is an AI company in this environment, and so as you see these productivity benefits begin to accrue more broadly, that's when I really think you're going to see this rotation materialize in a more durable way.”
“So I think what we're moving into is arguably a world of more balance. After being in a world for the past couple of years where it just felt like one big, one way trade.”