BlockBeats News, July 20th, JPMorgan Chase strategists stated that AI-related stocks are unlikely to remain under long-term pressure, with strong earnings growth and valuation improvement expected to reinvigorate demand, especially for semiconductor companies. The team led by Mislav Matejka pointed out in the report that semiconductor stocks have disconnected from the improving earnings outlook.

The report mentioned that substantial supply growth is not expected until 2028, so it is still too early to reflect the inflection point in semiconductor prices in the market. The fundamentals are likely to remain constructive. The relative strength index of these chip stocks is rapidly approaching oversold territory, with the strategist stating that if the capital expenditure expectations of hyperscale data center operators remain strong, investors should "re-enter the sector this summer." (Bloomberg)