Morgan has dismissed fears that the recent volatility in technology stocks signals the end of the artificial intelligence investment boom, asserting that the underlying capital cycle remains robust.
The bank’s assessment comes as Asian tech equities and the Philadelphia Semiconductor Index have suffered a sharp correction, with declines ranging between 25% and 30% from recent peaks.
Morgan characterizes this move as the third major drawdown since the current upcycle began in late 2022, framing it as a recurring market pattern rather than a fundamental shift in demand.
This view aligns with broader institutional sentiment suggesting that investor conviction in the sector remains strong.
Morgan Asset Management recently reported a significant surge in capital flowing into artificial intelligence-themed exchange-traded funds, indicating that long-term buyers are treating the price weakness as an entry point rather than a warning sign.
The bank’s stance is echoed by other major financial institutions.