[JPMorgan: Current AI trading divergence reminiscent of the 1999 internet bubble] BlockBeats News, July 2 — JPMorgan technical analyst Jason Hunter stated in a client report that the current internal divergence in AI trading is beginning to evoke memories of the period leading up to the 1999 internet bubble. The issue lies in the continued rise in stock prices of semiconductor, storage, and AI hardware suppliers, while the hyperscale cloud providers, who bear the brunt of massive capital expenditures, are significantly lagging behind. This type of divergence is critical in the market. The rise in AI hardware companies is driven by the continued large-scale purchases of chips, servers, storage, and data center equipment by cloud providers such as Microsoft, Meta, Alphabet, and Amazon. If the stock prices of these "buyers" remain under pressure while the stock prices of the "sellers" continue to soar, investors will eventually question whether this wave of capital expenditures can be sustained. JPMorgan pointed out that if the stocks of major cloud providers fail to stabilize during the summer, the market could face greater downside pressure in the fall. In other words, the short-term AI rally can still rely on hardware profits and orders for support, but in the medium term, the cloud providers themselves need to be re-recognized by the market.