J.P. Morgan: Recent Chip Stock Declines Not the Start of a Long-term Downturn, But a Springboard for the Next Rally
J.P. Morgan notes that as many leading AI chip stocks have experienced double-digit declines, the divergence between chip stock prices and fundamentals is widening — particularly evident in European semiconductor stocks: despite rising expected earnings over the next 12 months, their share prices have even lagged behind the broader market average. The bank expects that AI-driven DRAM supply-demand tightness will persist through 2028, and the Q2 earnings season will be the catalyst for the next rally.
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Saudi Arabia's oil production in October surged by 26%, reaching the highest level since the onset of the conflict, while Brent crude has dropped over 20% this month
OPEC's monthly report shows that Saudi Arabia's average daily crude oil production in October rose to 10.56 million barrels, just several hundred thousand barrels lower than the pre-war level in February and slightly above its quoted limit under the OPEC framework. Iraq's daily output in October also reached approximately 4.9 million barrels, a new high since the outbreak of war. Meanwhile, after the UAE exited OPEC and began competing in the market independently, both the UAE and Saudi Arabia recently slashed their official December cargo prices for Asian buyers, intensifying the competitive landscape.
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