The analyst is bullish and has taken long positions in GOOGL and META, and suggests MSFT and AMZN are attractive buys due to their valuation and growth prospects in cloud and robotics.
The analyst agrees with JP Morgan's bullish outlook on AI bottlenecks and believes in a continuing AI supercycle, expecting demand/supply mismatches in cloud services to persist, making hyperscalers like GOOGL, META, MSFT, and AMZN good long-term investments.
JP Morgan comfirm their bullishness on AI bottlenecks: In their 2026 Mid-Year Outlook report. "The evidence suggests investing for a continuing AI supercycle" "We believe the narrative around the AI supercycle has become too pessimistic" "Industries that control the physical bottlenecks... should continue to perform well": - optical equipment + networking - memory - power With these names mentioned as AI bottlenecks: - $NVDA - $TSM - $AVGO - $META - $SNDK - $MRVL - $LITE - $COHR - $ANET - $APH - $VRT They also say to consider investment in the hyperscalers since "market participants have grown more skeptical of the companies’ expanding capex plans." I agree, given the expanding demand/supply mismatch esp in cloud services. I'm personally heavy on $GOOGL and have started building my $META position recently over the past few months. Separately, $MSFT is stupidly cheap rn + $AMZN also deserve consideration just cos of AWS & robotics tailwinds. I feel a total rotation away from these names is wrong - having some small allocation at cheaper prices now makes sense for future planning. Like, when capex slows eventually, those bottlenecked names will close up? That's still ages away per all reliable forecasts, but still...makes sense to at least build hyperscaler positions slowly at lower prices? Overall, nothing "new" in the report that many of us on X didn't know already. And unfortunately no new names highlighted like BofA's semis report in Jan with $SOI. But good to see institutions like JP Morgan/GS/BofA essentially confirm bullishness on upstream names in the supply chain as multi-yr beneficiaries.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +0.0% | +0.0% |
| 1 week | +0.2% | -1.5% |
| 1 month | -7.1% | -8.7% |
| 3 months | — | — |
| 6 months | — | — |