CNBC Television
The dispersion among the early AI winners is here to stay, says JPMorgan's Gabriela Santos
11/6/2025, 11:59:19 AM
Economic Summary
- AI is universally viewed as transformational; debate centers on how much of that future is already priced in, implying active selection is necessary for long-term gains.
- The Magnificent Seven continue to show strong fundamentals (earnings growth above 20% and cloud revenue up ~25% year-over-year), supporting further monetization of AI for hyperscalers.
- A major practical bottleneck for large-scale AI adoption is electricity and grid capacity; countries with more modern grids (e.g., China) may be advantaged, driving interest in contracted power and infrastructure investments in both public and private markets.
Bullish
- AI is a transformational, multi-year structural theme worth leaning into for long-term portfolios.
- Hyperscalers are monetizing AI with strong cloud revenue growth, supporting earnings expansion.
- Infrastructure and contracted power providers (including private markets) present durable investment opportunities.
Bearish
- AI valuations look over-extrapolated, leaving risk of sharp pullbacks in richly valued names.
- Electricity and grid capacity could become a binding constraint on AI deployment and growth.
- High dispersion across tech winners increases company-specific risk; avoid small caps and consumer cyclicals now.
Bullish tickers
NVDA
Bearish tickers
NVDA
NVDA
Bullish
Key AI infrastructure leader benefiting from demand for chips and cloud AI workloads.
Bearish
High valuation multiples raise pullback risk if AI hype reverts or growth disappoints.
JPM
People mentioned
Gabriela SantosJamie DimonJensen HuangAndrew