AI Investment Returns Emerging, Says JPMorgan as Market Broadens Beyond Mega-Cap Tech

According to Stephen Parker, global investment strategy co-head at JPMorgan Private Bank, in a CNBC interview, concrete signs of returns from AI investments are emerging, with companies heavily investing in AI seeing profit margin expansion outpace the S&P 500 overall.

Parker noted that nearly 90% of companies beat earnings expectations in Q1. The market is experiencing healthy sector rotation beyond "Big Tech Seven" and hyperscalers, with industrials, utilities, and financials showing strong performance. Despite recent semiconductor and software stock volatility, the S&P 500, Nasdaq, and Dow Jones remain near historic highs.