JPMorgan Sees 12% AI Stock Dip as 30% Rebound Opportunity; Kyndryl Falls 20%
JPMorgan strategist John Craig highlighted a 12% decline in AI-focused equities over the past month and urged investors to tilt 3% of portfolios toward mega-cap AI leaders, citing a potential 30% upside. Separately, Kyndryl shares have plunged roughly 20% year-to-date as revenue growth slowed to 4%, prompting sell ratings.
1. AI Selloff Spurs JPMorgan Buying Recommendation
JPMorgan’s equity strategist John Craig noted that AI-focused names slid about 12% during the past month, creating what he describes as “an attractive entry point.” He recommended reallocating roughly 3% of diversified portfolios into mega-cap AI leaders, forecasting up to 30% upside as fundamentals catch up to valuations.
2. Kyndryl’s Share Decline and Analyst Cautions
Kyndryl shares have tumbled around 20% year-to-date after reporting just 4% revenue growth in the latest quarter and narrowing operating margins. Analysts have downgraded the IBM spin-off to sell or hold, pointing to weak demand for legacy infrastructure services and cautious guidance for the coming quarters.