JPMorgan Strategist Warns AI Stocks Show Divergence Similar to Pre-Burst Dot-Com Bubble

According to JPMorgan Chase strategist Jason Hunter, in a report published on Wednesday, July 2, the U.S. stock market is showing a pattern reminiscent of conditions preceding the dot-com bubble burst. Hunter noted that hardware stocks and major AI investor holdings are diverging, mirroring the 1999 dynamic when communications equipment suppliers surged while companies with heavy capital exposure in those sectors crashed from peak valuations. The internet bubble ultimately burst in early 2000, less than a year after such divergences emerged.
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