Is the capital expenditure "brake" of AI a good thing? Former JP Morgan strategist: Market rebound requires large companies to make a statement "stop loss"

Marco Kolonovich, former chief strategist and co-head of global research at J.P. Morgan, said on Thursday that artificial intelligence trading is experiencing a dramatic reversal - if a tech giant tightens AI infrastructure spending, shifts to defending profits and cash flow, the market may instead see a rebound. In this year's tech-led sell-off, the software sector is at the forefront. The market is both pricing in the anxiety brought by AI disruptive impact and increasingly concerned about the ongoing surge in capital expenditure by super-sized manufacturers, which may have reached unsustainable levels. Meanwhile, the significant rotation of funds towards value stocks is becoming one of the main themes in the 2026 market. Kolonovich wrote on the social platform X: "The irony is that, for the market to rebound, it actually needs a super-sized manufacturer or software company to come forward - to stop AI investment (no longer purchase overpriced memory) and return to a cash flow orientation." Microsoft Corporation (MSFT.US), Alphabet Inc. Class C (GOOGL.US), Amazon.com, Inc. (META.US), and Meta Platforms (META.US) have all announced their AI investment plans for this year, with a total scale of up to $650 billion.