J.P. Morgan
May 10, 2026
Global Equity Views
Market ReportEquitiesPrivate MarketsCommoditiesEnergyFinancials
J.P. Morgan's 2Q 2026 outlook emphasizes that while the AI investment boom drives robust global earnings, high US valuations warrant a neutral stance and a pivot toward undervalued quality stocks.
Key Takeaways
- 1.The AI investment boom is the primary driver of global corporate profit growth, overshadowing concerns about energy costs.
- 2.US market valuations are elevated, trading above long-term averages, leading to a neutral overall market outlook.
- 3.A massive de-rating in 'AI losers'—specifically software and SaaS companies—has created selective contrarian opportunities.
Table of Contents
- In brief
- Taking stock
- Profits are accelerating, fueled by the AI investment boom
- Investing in perceived "AI losers": Risks, opportunities and frameworks
- Quality investing: Cyclical weakness, signs of recovery, selective opportunity
- Views from our Global Equity Investors Quarterly, April 2026
- Build stronger equity portfolios with J.P. Morgan
- Next steps
- IMPORTANT DISCLAIMER
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Authors
Paul Quinsee
Securities
S&P 500Magnificent 7
Themes
AI Investment BoomValuation DisciplineQuality Factor RecoveryContrarian AI Losers
Regions
North AmericaAsia PacificEuropeUnited StatesJapan