JPMorgan's "long software, short semiconductor" basket surged 12.1% on Tuesday, marking its largest single-day gain ever, reflecting a dramatic shift in AI-related trading. Market concerns about a slowdown in the training pace of cutting-edge AI models led to a shift of funds from some AI infrastructure and long-cycle semiconductor equipment to software, cybersecurity, large cloud platforms, and lagging AI stocks. However, it's important to note that a "slowdown" in cutting-edge AI R&D does not equate to a halt in training. More stringent security, alignment, and third-party evaluations may actually require more computing power. Therefore, this is more of a scenario reassessment than a confirmed decline in AI computing power demand. (The above views are from a JPMorgan report dated September 15th.)
