JPMorgan and Morgan Stanley have given opposing advice on the artificial intelligence (AI) chip trade. JPMorgan views the recent dip in AI chip prices as a buying opportunity, while Morgan Stanley suggests it is time to move on from chip stocks.
JPMorgan’s Stance
JPMorgan told clients the recent selloff is a buying opportunity, citing strong demand for AI chips and tight supply. The bank does not expect meaningful new chip capacity to arrive until 2028, giving chipmakers real pricing power.
Morgan Stanley’s View
Michael Wilson, chief investment officer at Morgan Stanley, disagrees, saying the momentum behind chip stocks is fading. His team notes that chipmaker earnings estimates have been raised to historic extremes and that hyperscalers like Microsoft, Amazon, and Meta are spending more on AI, yet their shares have continued to slip.
Implications for Crypto
The correlation between chip stocks and crypto is close, with both often moving together as high-beta bets on AI and easy money. If hyperscaler weakness turns into a broad tech selloff, it could drag risk-on flows into crypto lower. Steady hyperscaler spending on the next earnings calls would support Morgan Stanley’s rotation, while sudden cuts would spell trouble for chips and crypto alike.
Based on reporting from crypto.news.
