JPMorgan: Artificial intelligence and momentum trading are too crowded, blue-chip stocks may be a wise choice.

date
23/07/2025
The most speculative areas in the market may become overly popular, with the pace of popularity rising too quickly. JPMorgan warned that investor interest in high beta, momentum-driven stocks such as Palantir, Coinbase, and Nvidia has reached a 100th percentile level of crowding, the most extreme holding level in 30 years. Strategist Dubravko Lakos-Bujas wrote, "This crowding not only brings risks to this sector, but also rings alarm bells for the entire market, indicating that investors' complacency is on the rise in the short term."