Semiconductor stocks face pressure as JPMorgan strategist warns of volatility

JPMorgan Asset Management strategist Jorn Veeneman said semiconductor stocks were under pressure again, noting that the Philadelphia Semiconductor Index has fallen about 20% from its peak but remains up 68% year‑to‑date. He highlighted strong earnings from chip makers and projected roughly 100% profit growth for the sector in 2026.

Veeneman pointed to the spending plans of major hyperscalers such as Alphabet, Amazon, Meta, Microsoft and Oracle, estimating $700 billion of investments in 2026. He cautioned that investor uncertainty now centres on longer‑term profit growth and that continued AI‑driven demand could support the market, but warned of continued volatility.