JPMorgan's Sundar Says AI Trade Is in 'Digestion' Phase
Sitara Sundar, head of alternative investment strategy at JPMorgan Private Bank, stated that the artificial intelligence trade is currently in a digestion phase. Speaking on Bloomberg Television, she noted that while trillions have been invested in building out AI infrastructure like data centers and chips, the market is also trying to assess how AI will integrate into non-technology sectors. Sundar emphasized JPMorgan's long-term constructive outlook but warned of near-term volatility as markets adjust. She highlighted a potential shift toward investments in integration layers such as cybersecurity around proprietary data sets rather than just model development. The firm expects continued CAPEX spending despite higher interest rates, with some financing activity already occurring at 8-10%. Sundar also noted that the current high-interest environment is influencing how capital expenditures are allocated and suggested there's still room for AI-related investment to continue before it might be significantly impacted by rising rates.
Tickers: $JPM
Topics: artificial intelligence investment strategy JPMorgan long-term growth