JPMorgan Says Buy the Dip in Chip Stocks

JPMorgan strategist Mislav Matejka said the recent weakness in semiconductor stocks should be used as a buying opportunity, while flagging that broader market participation is set to widen in the second half of 2026 as stagflation fears unwind.

Recommendation Change

Matejka did not explicitly change his rating but indicated that the current pullback in chip stocks presents an attractive entry point for investors.

Analyst's Rationale

Matejka believes that stagflation fears are fading, which will encourage investors to diversify away from mega-cap leaders into broader sectors, including technology and semiconductors. He added that valuations for chip stocks have become more compelling after the recent decline.

Context

The positive view comes after a notable weakness in semiconductor stocks in recent weeks, amid concerns over slowing demand and monetary tightening. However, Matejka argues that fundamentals remain strong and the correction is temporary.

Conclusion

Matejka's call reflects confidence in the medium-term growth cycle for the chip sector, but investors should remain mindful of risks from market volatility and policy changes.