Amundi and JPMorgan back AI as long-term bet amid tech rout

Even as Asian technology stocks suffer their steepest declines of the current AI cycle, two of the world's most influential institutional investors are urging calm. Amundi ↘ 4.57%, Europe's largest asset manager, and JPMorgan ↘ 0.75% both signaled this week that the selloff represents a bump in the road rather than the end of the AI trade.

Third Correction, Not a Collapse

In an Asia Technology Strategy report released on August 5, JPMorgan said Asian tech equities and the Philadelphia Semiconductor Index have fallen by 25% to 30% cumulatively, marking the third correction of more than 20% in the current AI-driven upcycle. Rather than signaling a turn in the cycle, the bank argued that fundamentals "show no signs indicating a material weakening over the next 6 to 12 months" and called the pullback a buying opportunity.moomoo

JPMorgan highlighted semiconductor equipment makers as the most attractive subsector for the next 12 months, forecasting upward revisions to capital expenditure guidance from Taiwan Semiconductor ↗ 1.66% and major memory manufacturers. The bank expects equipment and cleanroom capacity to become the next bottleneck by 2027–2028. IC substrates were flagged as the strongest segment within components, while memory stocks were treated with more caution.moomoo

Amundi, which oversees roughly $2.8 trillion in assets, separately described AI as a long-term structural bet, according to Nikkei Asia, even as Asian markets opened lower on Thursday amid continued tech weakness.bloomberg+1

Record Capital Flight From Asia

The reassurances arrive against a backdrop of historic capital flight. International investors pulled a net $137.36 billion from equities across South Korea, Taiwan, India, Indonesia, Thailand, Vietnam, and the Philippines in the first half of 2026 — the fastest six-month outflow in LSEG data going back to 2010, according to Reuters. The selling was concentrated in AI-driven winners in South Korea and Taiwan as fund managers trimmed crowded positions.reuters

Diverging Views on the Path Forward

JPMorgan's bullish stance on Asian tech hardware sits in some tension with its own strategists' broader caution on the sector. Separately, JPMorgan strategist Mislav Matejka warned this week that U.S. market leadership may shift away from AI and tech stocks in the second half of 2026, questioning whether hyperscaler AI spending will translate into free cash flow. The bank projected combined hyperscaler capital expenditure reaching roughly $901 billion in 2026 and approximately $1.49 trillion in 2027, underscoring the scale of the bet the industry is making.kucoin+2

For now, both Amundi and JPMorgan are asking investors to look past the turbulence — a message that will be tested as markets digest whether AI's promises can keep pace with its price tag.