Eye on the Market Outlook 2026: Smothering heights
Chairman of Market and Investment Strategy for J.P. Morgan Asset & Wealth Management
The market capitalization of four hyperscalers and the semiconductor ecosystem companies they rely on has grown from $3 trillion to $18 trillion in just a few years, and a broader group of 42 artificial intelligence (AI)-related companies has generated 65% to 75% of S&P 500 earnings, profits and capital spending since ChatGPT’s launch in November 2022. Is this moat really indestructible?
In the 2026 Eye on the Market Outlook, Chairman of Market and Investment Strategy for J.P. Morgan Asset and Wealth Management, Michael Cembalest, focuses on four medium-term risks: U.S. power generation constraints, China scaling the moat on its own, Taiwan and a “metaverse moment” for hyperscaler profits after $1.3 trillion of capital expenditure and research and development.
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Chairman of Market and Investment Strategy for J.P. Morgan Asset & Wealth Management
