Strategists at JPMorgan say global artificial intelligence-related stocks are harboring numerous opportunities after underperforming the broader market over the past several months.

The team, led by Mislav Matejka, believes that after a sharp pullback in technology sector valuations, positioning has become healthier, while the upward trend in capital expenditure is likely to remain intact.

The team also expects earnings to keep strengthening, with the supporting logic for commercialization steadily gaining traction.

“The technology sector may find it difficult to replicate its past glory... but the fundamental logic remains favorable, and there are abundant investment opportunities within the artificial intelligence supply chain,” the strategists wrote in a research note.