JPMAM says AI boom entering ‘show me the money’ moment

InvestorDaily

The artificial intelligence boom is entering a new phase: one where ambition alone is no longer enough. After years of record investment and soaring expectations, investors are now demanding evidence that the hundreds of billions of dollars being poured into AI infrastructure will translate into real earnings growth, stronger margins and sustainable returns, according to J.P. Morgan Asset Management (JPMAM). Managing director and global market strategist, Kerry Craig, said as hyperscalers ramp up spending on data centres, chips and computing capacity, the market’s focus is shifting from who can build the biggest AI platforms to who can actually monetise them – and how long shareholders will have to wait for the payoff.

“You’ve got all this money going in. Who’s going to win… is it the companies or is it people in terms of the labour share versus the capital share of the economy?,” he posed at the firm’s Q3 media briefing on 6 August. “Those are questions that get answered over a very long time frame, but for markets they’re much more short term, and so they’re saying, just show me the money.” Markets are now looking for evidence that the AI capex boom can deliver revenue growth and cash flows, even as the ultimate winners – whether capital providers, workers or companies adopting the technology – may only become clear over a much longer horizon.

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