JPMorgan’s chief investment officer says the clearest signal on artificial intelligence is not stock price volatility, but where companies are putting real money.
In a new CNBC interview, JPMorgan CIO Bob Michele says corporate spending patterns show businesses are preparing to scale AI, not retreat from it.
“I think you have to look at where the money’s going. And right now, every company we talk to, and we extend a lot of credit into the system, everyone’s gearing up for CapEx (capital expenditure) next year.”
Michele says AI is now viewed as an operational advantage that companies cannot afford to ignore.
“They’re looking to ramp up some hiring. They’re looking to build out whatever they’re doing in AI. They see the effectiveness of it. They want to spend in that area. And of course, they’re going to spend at the biggest producers in that space.”
He points to history as proof that technological capital cycles do not stop when markets cool.
“The lesson of the dot-com is that there was a bubble, and it burst. We don’t think we’re in one now for AI, but companies didn’t stop spending on Wi-Fi, the internet, and technology.”
Michele warns that dismissing AI because of valuation concerns would be a profound strategic mistake.
“Can you imagine if every company out there said, ‘I told you so. Look at stock valuations. They’re down. I’m not going to invest in this. It’s a hoax.’ Ridiculous.”
Fellow banking giants Goldman Sachs, UBS and Bank of America have also dismissed bubble talks in AI.
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