Global Markets Strategy 29 January 2026 J P M O R G A N Global Machine Learning Conference Paris Conference Overview & Session Reviews • Our 8th Annual Global Machine Learning Conference (Paris, November 25) brought together leading experts from organisations such as IBM, École Polytechnique, UBS AM, Mediobanca, Domyn, Millennium, and AXA. Speakers explored a range of topics including practical applications of agentic AI, synthetic data for portfolio management, AI regulation in financial services, responsi ...

Core Insights - The rise of artificial intelligence (AI) is seen as a significant technological breakthrough that can enhance efficiency and innovation for companies [1][2] - The AI market is projected to reach trillions of dollars in the coming years, attracting substantial investor interest and driving gains in major indices like the S&P 500 [2] Company Analysis - **Nvidia**: - Nvidia is a leading player in the AI chip market, known for its graphics processing units (GPUs) that support large language models [5] - The company has experienced substantial revenue and net income growth, with record revenue levels achieved recently [6] - Nvidia's strategic initiatives, including partnerships and acquisitions, position it well for continued growth in the AI sector [7] - **Amazon**: - Amazon is both a user and provider of AI technologies, leveraging AI to enhance its e-commerce operations and improve customer experience [10] - The application of AI in optimizing delivery routes and customer assistance has contributed to Amazon's competitive advantage and cost efficiency [10]

Core Insights - The article discusses the rapid growth of the AI semiconductor market, highlighting the potential of high-bandwidth memory (HBM) as a key component for AI infrastructure [1][10] Group 1: AI Market Growth - Artificial intelligence is projected to contribute $15.7 trillion to the global economy by the end of the decade, with productivity gains accounting for $6.6 trillion and consumer-related applications for $9.1 trillion [2] - Nvidia has dominated the AI chip market, holding over 90% market share in GPUs, which are essential for training large language models [3][5] Group 2: Competitive Landscape - The emergence of application-specific integrated circuits (ASICs) is expected to challenge Nvidia's GPU dominance by 2026, as companies like Alphabet and Meta are ordering custom AI processors from Broadcom and Marvell Technology [6][7] - Broadcom anticipates its AI revenue to double to $8.2 billion in the current quarter, supported by significant contracts from major tech firms [7] Group 3: Memory Demand - The demand for high-bandwidth memory (HBM) is surging, with Micron Technology estimating HBM market revenue to grow from $35 billion in 2025 to $100 billion in 2028 [11] - Micron's revenue increased by 57% year over year in Q1 fiscal 2026, reaching $13.6 billion, driven by high demand for HBM [13] Group 4: Future Outlook - Analysts forecast a 288% increase in Micron's earnings this year to $32.14 per share, indicating strong growth potential in the HBM segment [14] - Micron's current trading valuation is below 10 times forward earnings, suggesting it may be an attractive investment opportunity as the demand for HBM continues to rise [15]

LAST UPDATED: December 29, 2025 at 12:49 PMGUEST POST from Art InteligenciaIn the world of corporate strategy, we love to manufacture myths of inevitable visionary genius. We look at the behemoths of today and assume their current dominance was etched in stone a decade ago by a leader who could see through the fog of time. But as someone who has spent a career studying Human-Centered Innovation and the mechanics of innovation, I can tell you that the reality is often much messier. And this is no different w ...

Let's talk about that and more with your leadoff guest, Stephanie Gild, chief investment officer of Robin Hood. Probably one reason, by the way, Stephanie, that you and your team have seen inflow surge. Your stock, by the way, one of the hottest in all the land as well.What do you and your team see for 2026. >> Yeah, we we have definitely seen high participation. Um, and you've seen net buying really, especially since the summer.That being said, net buying has trailed off a bit um from our customer base fro ...

Core Insights - CFOs are facing a plethora of new AI tools that promise to enhance workflows, but they must critically assess the actual capabilities of these tools and their fit within finance [2][3][4] - The role of CFOs is evolving as they navigate risks and changes brought about by AI, regulatory shifts, and economic challenges, requiring a new approach to team management and risk assessment [4][6][7] - The increasing frequency of "black swan" events necessitates agile scenario planning and a focus on supply chain management, which has become a critical topic in boardrooms [20][21] AI Integration in Finance - CFOs need to differentiate between automation and true AI capabilities, as many tools currently available are more about automation than genuine AI [2][3] - Understanding the probabilistic nature of AI models, such as large language models, is crucial for CFOs to determine where to place trust in these technologies [8] Skills and Talent Management - Strong analytical, interpretative, and storytelling skills are becoming increasingly important for CFOs and their teams, as AI can handle routine tasks but human skills are essential for strategic decision-making [9][12] - The ability to communicate financial results effectively to various stakeholders is a key skill for CFOs, requiring tailored narratives for different audiences [14] Evolving CFO Roles - The role of CFO is expanding to include operational responsibilities, with many CFOs also taking on titles such as COO or president, reflecting a broader scope of influence in business strategy [15][16] - Successful CFOs emphasize the importance of delegation and developing talent within their teams to manage the dual responsibilities of finance and operations effectively [18] Navigating Risks and Uncertainties - The rise of black swan events has made it essential for CFOs to prepare for unexpected challenges and to incorporate flexible forecasting methods into their planning [19][20] - Supply chain management has gained prominence in discussions among CFOs, highlighting its critical role in navigating current economic uncertainties [20]

Core Insights - The stock market has seen a positive trend in 2025, with the S&P 500 index up by 16% year to date, but individual stocks like Palantir Technologies and Quantum Computing Inc. have shown significant volatility and may warrant profit-taking considerations [1][2]. Palantir Technologies - Palantir Technologies has experienced a remarkable 153% increase in share price year to date, benefiting from the rise of large language models (LLMs) and maintaining strong connections in defense and law enforcement sectors [3][5]. - The company's market capitalization has reached $461 billion, making it larger than any public company in Europe or Japan, and the 19th largest in the U.S. [5]. - Despite its growth, Palantir's valuation is high, trading at a forward price-to-earnings (P/E) multiple of 262, which is significantly higher than other AI-related stocks [6]. - Third-quarter revenues increased by 63% year over year to $1.2 billion, but high market expectations may overshadow even strong performance [8]. Quantum Computing Inc. - Quantum Computing Inc. has seen a sharp decline since early October, erasing its 2025 gains and leaving it down approximately 40% year to date, despite a 600% increase over the last 12 months [9][10]. - The company operates in the quantum computing hardware market, where valuations are driven more by hype than by actual revenues or profits [9]. - Analysts suggest that commercially viable quantum computers may not be available until 2040, with significant technical challenges remaining [11]. - In the second quarter, Quantum Computing Inc. reported a 66% drop in revenue to $61,000, while losses nearly doubled to $10.2 million, raising concerns about its financial sustainability [13].

Core Viewpoint - Oracle Corp (NYSE:ORCL) is facing scrutiny regarding its cloud margins and dependence on OpenAI, leading to a reduction in investment positions by analysts [2][3][4] Group 1: Analyst Insights - Malcolm Ethridge, managing partner at Capital Area Planning Group, is reducing his position in Oracle due to concerns over its cloud margins compared to competitors like AWS and Google Cloud [2] - Analysts express that while Oracle is improving customer margins, its own margins are reportedly significantly lower than those of Amazon Web Services and Google Cloud [3] - The share price of Oracle has surged from approximately $150 in April to over $300 recently, largely driven by its contract with OpenAI, which is valued at $300 billion over five years [3][4] Group 2: Financial Context - Oracle's contract with OpenAI implies an annual contract value of $60 billion, starting in 2027, which raises concerns about the sustainability of these figures if performance metrics are not met [3] - The hyperscaler companies, including Oracle, are projected to spend $405 billion on capital expenditures (CAPEX) related to AI infrastructure by 2026, highlighting the significant investment landscape in the AI sector [4]

Group 1 - Oracle Corp (NYSE:ORCL) is gaining attention due to its ambitious guidance for cloud revenue, projecting an increase from $10 billion last year to $17-18 billion this year, and aiming for $144 billion by 2030, representing a 14-fold increase [1] - The competitive landscape in the cloud business includes major players like Amazon, Microsoft, and Google, raising questions about revenue generation and efficiency over the next decade [1] - A significant catalyst for Oracle's recent market activity is a 5-year contract with OpenAI valued at $300 billion, which implies an annual contract value of $60 billion starting in 2027 [2] Group 2 - In 2026, five hyperscaler companies, including Oracle, are expected to collectively spend $405 billion on capital expenditures (CAPEX), primarily focused on AI infrastructure [3]

Summary of Key Points from the AI vs Human Conference Report Industry Overview - The report discusses the current state and future of the AI industry, focusing on the myths and realities surrounding AI technology and its adoption across various sectors [2][6][7]. Core Insights and Arguments 1. **Hype vs. Reality**: The excitement around AI often overshadows the nuanced reality, with significant questions about who will be the value creators in the AI economy and how market structures will evolve [2][3]. 2. **Agentic AI**: The future of AI is expected to be more about Agentic AI—systems capable of independent planning and action—rather than just large language models (LLMs) and silicon chips [2][3]. 3. **Emerging Oligopoly**: The advancements in LLMs are leading to a concentration of power among a few tech giants, creating barriers to entry for smaller players due to high capital and computational requirements [3][4]. 4. **Productivity Paradox**: Initial AI adoption often leads to a decline in productivity, particularly in larger firms, due to the need for extensive integration and redesign of workflows [4][14][16]. 5. **Data as a Competitive Moat**: The availability of in-house data for fine-tuning AI solutions will become a more significant competitive advantage than merely having superior AI technology [5][57]. 6. **Sovereign AI**: Nations are increasingly focusing on developing their own AI capabilities to reduce reliance on foreign technology, leading to a new form of protectionism in the AI sector [27][29]. 7. **Investment Trends**: While there has been a surge in interest in AI, significant investments in the sector began before the launch of ChatGPT, with the highest corporate investments occurring in 2021 [40][44]. Additional Important Insights - **AI Adoption Stages**: The report highlights that enterprise-level adoption of generative AI is still in its early stages, with only 23% of organizations using it regularly [15][18]. - **Time Savings from AI**: Users of generative AI tools report minimal time savings, averaging only 30 minutes per week, indicating limited immediate productivity benefits [15][20]. - **International Competition**: The competition between the US and China in AI development is intensifying, with both nations taking measures to protect their AI ecosystems [27][29]. - **Cost of AI Development**: The cost of developing foundational models has increased significantly, with estimates for training advanced models like ChatGPT 4 ranging from $41 million to $78 million [32]. Conclusion - The report emphasizes the need for organizations to rethink their approach to AI adoption, focusing on integration and data utilization rather than merely implementing AI technologies. The evolving landscape of AI presents both opportunities and challenges, particularly in terms of competition and productivity gains [4][5][14][17].