JPMorgan Chase strategist Michael Cembalest, in his July 22 "Eye on the Market" report, stated that he is turning "cautious" on the technicals of the U.S. stock market given recent trends in artificial intelligence (AI) trading. He noted a significant recent surge in semiconductor stocks, while shares of AI hyperscale cloud service providers such as Google, Amazon, Meta, Microsoft, and Oracle have stagnated. Cembalest believes that when companies closer to end-demand stagnate while capital expenditure beneficiaries continue to boom, it could be a worrying sign of a boom cycle, similar to the period before the dot-com bubble burst in 1999-2000. He suggested that investors consider diversifying their portfolios to mitigate the risks of overvalued AI stocks.