JP Morgan global markets strategist Nikolaos Panigirtzoglou and his team say
recent weakness in the semiconductor sector indicates most long positions,
including momentum trades, have been liquidated, which may have capped further
downside despite persistent short-term headwinds. They flag financing risk at
new cloud companies as a market concern but judge it only a partial problem:
intense compute demand could allow firms to pass higher financing costs to end
customers, and even if external financing becomes constrained Panigirtzoglou
does not expect capex-to-revenue timing mismatches to derail the sector's growth
cycle.
