JPMorgan’s Gabriela Santos identifies assets to buffer AI volatility

You don’t have to sell your AI winners to survive the next AI correction. That’s the core argument from Gabriela Santos, Managing Director and Chief Market Strategist for the Americas at J.P. Morgan Asset Management, who has been making the case that smart diversification beats wholesale retreat from the sector’s biggest theme. Santos has labeled the current stretch as the “revenge of diversification,” a phrase that captures her broader thesis: the AI trade is maturing, its beneficiaries are multiplying, and portfolios that spread exposure across geographies and sectors will weather turbulence far better than those concentrated in a handful of mega-cap names. The AI boom is broadening, and that changes the playbook For years, the AI investment story was essentially a bet on the Magnificent Seven. Santos argues that chapter is closing. The next wave of gains, in her view, will flow to a wider group of companies, particularly semiconductor firms across Asia, where she has flagged profit growth potentially reaching as high as 450%. Santos describes the current market environment as an “earnings supercycle” powered by AI technology. US equity valuations have actually eased despite stro...