Woofun AI reports that JPMorgan warns the persistent outperformance of semiconductor stocks relative to hyperscale cloud providers may be unsustainable. The bank outlines two scenarios: an optimistic view where cloud providers improve profitability and capture more AI value, or a pessimistic one where high semiconductor costs suppress cloud capital expenditures, dampening demand. While JPMorgan internally favors the optimistic case, consensus expects cloud capex growth to decelerate sharply from 100% in 2026 to 7% in 2028, potentially triggering significant corrections in AI-related assets.

Additionally, the report notes that rising U.S. money creation, projected to reach $18 trillion by 2026, will continue supporting U.S. financial assets.