Banking giant JPMorgan is unveiling two investment themes that would allow investors to capture the potential upside of the AI CapEx wave while being protected against the risk of a recession.
In a new instalment of the JPMorgan Asset Management podcast, the bank’s global market strategist, Stephanie Aliaga, says the AI trade has shifted from mega-cap tech names to infrastructure plays.
According to Aliaga, investors should consider picking up equities that are likely to benefit from the massive hyperscaler AI spend.
“You can maybe invest in where all this CapEx is headed, and the ecosystem is made up of companies, sectors and industries that come in very different wrappers than concentrated mega-cap tech. So we’ve been talking about this infrastructure layer, but the broadening out of that. So power, utilities, electrical equipment companies…”
The market strategist says the other side of the investment strategy involves the chipmakers, believing that more companies will rely on AI agents to automate workflows.
“As we try to use more and more agents, we’re going to need a lot more memory. We’re going to need a lot more chips in general. We haven’t even started real deployment of AI robotics just yet. So there’s still a lot of value to be made on the infrastructure side. I was talking about chips.”
Overall, Aliaga says she’s bullish on infrastructure plays because they tend to hold up in an economic downturn or an AI disillusionment event.
“But I think the power story is one that is very structural in nature and these are companies with real assets behind them, sometimes contracted revenues, more defensive characteristics in case we did end up into a recession or a macro slowdown or whatever may be, so those I think are some real opportunities.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.