According to analysis, former JPMorgan Chase global research chief strategist and co-head Marko Kolanovic stated on Thursday that the artificial intelligence trade is undergoing a dramatic reversal. He suggested that if a major tech giant were to tighten AI infrastructure spending, shifting focus back to profits and cash flow, it could potentially trigger a market rebound. In the tech-led sell-off this year, the software sector has borne the brunt. The market is simultaneously pricing in unease about AI's disruptive impact and growing concerns that the sustained increase in capital expenditure by hyperscale companies may have reached unsustainable levels. Concurrently, a significant rotation of funds into value stocks is emerging as one of the key market themes for 2026. Kolanovic posted on social platform X, noting the irony: "For the market to rebound, it might actually require a hyperscaler or software company to signal a halt to AI investment—stopping the purchase of overpriced memory—and returning to a cash flow-oriented approach." Companies including Microsoft (MSFT.US), Google (GOOGL.US), Amazon (AMZN.US), and Meta Platforms (META.US) have already announced their AI investment plans for this year, with a combined scale reaching $650 billion.