JPMorgan Asset Management Sees More Upside in Tech Trade

JPMorgan Asset Management remains bullish on the technology sector, citing further upside potential in the AI data center supply chain despite concentration risks.

Aisa Ogoshi, a portfolio manager at the firm, acknowledged that the heavy concentration in tech stocks poses a risk, but she believes the trade still has room to run. "The risk obviously is in the tech trade due to market concentration," Ogoshi said in a Bloomberg interview. "But there's more upside to the tech trade, particularly in the AI data center supply chain." Her comments come as major tech names have driven much of the market's gains this year, raising concerns about narrow breadth.

For equity traders, the outlook suggests that while the broader market may be vulnerable to a pullback if tech sentiment shifts, specific sub-sectors like AI infrastructure providers could continue to outperform. The AI data center supply chain includes companies involved in semiconductors, networking equipment, and cooling systems, which benefit from rising capital expenditure by cloud giants. Traders can track these moves on NowPrice's live stocks dashboard to monitor real-time price action in key names.

Looking ahead, Ogoshi also discussed the Bank of Japan's policy trajectory, which could influence global risk appetite. A more hawkish BOJ might strengthen the yen and pressure Japanese equities, while a dovish stance would support the carry trade. Investors will watch for BOJ guidance at its next meeting, as well as earnings reports from major tech firms to confirm the AI investment thesis.