Investors have become increasingly concerned about the increase in capital expenses of artificial intelligence, many wondering if the integrated expectations on the financial markets are planning a realistic path to come today. According to a recent report on the subject of the investment bank JPMorgan, investors should focus on opportunities that will prevail throughout the AI value chain. Bank analysts advised investors to weigh the potential future benefits compared to what is already anchored in the price. According to JPMorgan, cheaper assessments and less demanding benefits of profits outside the technological actions of mega-capital suggest that even the AI bulls should be positioned for an additional enlargement between the sectors in 2025.
The JPMorgan investment prospects for investment prospects 2025 take a look at the arrow assessments of the magnificent group of seven and their importance for the AI revolution. The Bank stresses that if each of the Magnifiment Seven companies is directed differently from the theme of the AI, this group of stocks now represents almost 35% of the market capitalization of the S&P 500 and has resulted in more than 70% of the yields from the start from 2023. JPMorgan underlines that, although the rest of the S&P 500 is negotiated on a long term of 12 months of 19x, the 10 largest actions in the index are now negotiated on 29x.
Analysts led by Karen Ward, the chief strategist of the EMEA market at JPMorgan, argue that the evaluation gap between technology and the rest is not durable. The report stresses that if the broad ecosystem of the AI generates sufficient income to justify the expectations of the benefits already supposed for a handful of companies, the rest should make up for time. This also warns that if instead, the wider business universe does not see the clear use of these technologies and is not willing to pay them, then a capture scenario is more likely. However, when the solid fundamental principles of these mega ceilings are compared to other parts of the S&P 500 today, as well as to the technological bubble of the 2000s, a catch-up seems unlikely, he notes.
JPMorgan has broken down the AI revolution into five key areas. These have been identified as AI equipment, AI hyperscalers, AI developers, AI integrators and essential elements of AI. Equipment companies have been defined as companies that stimulate the design and manufacture of semiconductors that are essential to generate calculation power. Hyperscalers have been selected like companies that provide physical AI infrastructure such as cloud services and data centers, create personalized silicon chips and build large language models that can be used by other companies. AI developers have been recognized as software companies that exploit hyperscaler technologies to provide solutions to end users.
AI integrators have been pinned upon the major organizations that have sufficient technological functionality to build their own AI solutions, as well as the IT service companies that support them. Most of the AI has been distinguished as companies less directly affected by technology itself, but provides resources that allow the entire AI value chain to operate, whether it is energy , air conditioning, raw materials or even data to form models. JPMorgan warned that there is a substantial gap between expectations of income companies and income growth that can be generated by the AI ecosystem. The bank has warned that this weakness can spread throughout the AI value chain.
The report notes that the attention of investors has so far focused on AI equipment and AI hyperscalers, two areas of the AI industry more exposed to the technology and communication. According to JPMorgan, high levels of evaluation dispersion in these categories suggest that the possibilities of picking qualified action persist, but investors must recognize that any disappointment of profits could lead to substantial volatility. The report also points out that these categories are also likely to be the most exposed to the climbing of trade tensions between the United States and China. The bank predicts many opportunities for investors in the essential elements of AI and AI developers in time.
Our methodology
For this article, we have selected AI shares by painting via a note on the AI industry by the JPMorgan investment bank. These actions are also popular among hedge funds. Why are we interested in the stocks in which the hedge funds stacked? The reason is simple: our research has shown that we can surpass the market by imitating the main choices of stock of the best hedge funds. The strategy of our quarterly newsletter selects 14 shares with small capitalization and high capitalization each quarter and has rendered 275% since May 2014, beating its reference with 150 percentage points (See more details here).
Apple Inc. (AAPP): Jim Cramer explains why it is the “quarter -arre of your wallet” – This is why
A wide view of an Apple store, showing the product range that the company offers.
Number of hedge holders: 158
Apple Inc. (NASDAQ: AAPPL) is a consumer electronics company. The basic AI applications in which the technology giant are strongly invested include Siri, the Apple voice assistant and features such as automatic learning on devices for predictive text, photo categorization and Personalized recommendations on devices. These innovations focused on AI contribute to the retention of users within the Apple ecosystem, which stimulates the demand for equipment such as iphones, Macs and portable devices, as well as services such as iCloud and Apple Music. In recent years, Apple has increased investments in AI, in particular the acquisition of AI startups and the development of owners’ chips such as the neural engine, which feeds treatment in real time for the tasks of the Ia. Rumors of generators and extended AI projects in AI in health surveillance and augmented reality have positioned Apple more as a key actor in the AI landscape.
AAPPL Global rank 6th On our list of important AI actions for 2025 according to JP Morgan. While we recognize the potential of the AAPP as an investment, our conviction lies in the conviction that certain actions are more promising for the provision of higher yields and doing it within a shorter period. If you are looking for a more promising stock than the AAPP but which is negotiated within 5 times its income, consult our report on the Stock ai the cheapest.