[JPMorgan: Semiconductor Stocks Weakness Should Be Seen as a Buying Opportunity, Upcycle Not Yet Nearing Its End] BlockBeats News, July 7 — JPMorgan strategists stated that the recent weakness in semiconductor stocks should be viewed as a buying opportunity, as the chip upcycle is not yet nearing its end. Meaningful new supply is unlikely to emerge until 2028. The firm noted that the SOX Semiconductor Index fell approximately 5.4% during the shortened trading week before the Independence Day holiday, marking its second consecutive week of decline. However, the sector rebounded quickly on Monday, with storage-related stocks such as Marvell, Broadcom, Western Digital, and Seagate leading the gains, indicating that capital remains willing to flow back into the AI hardware chain. JPMorgan's stance is not entirely bullish on the AI concept. The firm favors the semiconductor and infrastructure sectors while remaining cautious about the so-called "AI cannibalization" areas—industries that may be replaced by AI, face pricing pressure, or see profit margins eroded. Sectors most affected include software, business services, and media. In other words, JPMorgan believes AI will still create winners but may not benefit all companies tied to AI. The certainty for hardware suppliers in the short term is higher than for some application and service companies.