Don't just focus on tech giants! JP Morgan strategist: Semiconductors, infrastructure and other sectors also have hidden AI winners.

Madison Faller, a strategist at J.P. Morgan Private Bank, recently pointed out in an interview that investors should not just focus on large tech companies, but should also look at the entire artificial intelligence (AI) industry chain to explore opportunities. "AI is not just a story for a single industry," the bank's global investment strategist said in the interview. She noted, "We are more focused on assets that are more capital-intensive and difficult to replace," and specifically mentioned the semiconductor, infrastructure, utilities, and industrial sectors. Faller believes that strong performance by tech companies can coexist with overall market profit growth. She added that in the current earnings season, it is expected that 10 out of the 11 industries covered by the S&P 500 index will achieve profit growth. According to LSEG IBES analyst forecasts, overall S&P 500 index profits in the second quarter are expected to increase by 23.4% year-on-year, a significant increase from the initial forecast of 15.2% at the beginning of the year. The J.P. Morgan team predicts that the total return of the S&P 500 index in the next year is close to 10% upside. At the same time, they expect that European large-cap stocks are expected to achieve mid-single digit returns. Faller pointed out that given the improving fundamentals of the European banking sector and the continued increase in dividends and share buybacks, bank stocks in this region are worth paying attention to.