Fears surrounding AI’s potential to disrupt major players in the technology sector have triggered a significant sell-off in tech stocks this month. This widespread market decline has led JPMorgan to identify a range of “mispriced” stocks, presenting a buying opportunity in select companies that are fundamentally resilient.
In a recent survey of equity analysts, JPMorgan pinpointed several firms that, despite being negatively impacted by market sentiment, are likely shielded from real AI disruption. Key themes emerged from their analysis: many of these companies operate in tightly regulated markets, offering robust barriers to AI competition; the rise of AI may actually increase demand for foundational data services they provide; and those with well-established infrastructures and dominant market positions are less vulnerable to replacement by AI technologies.
Among the highlighted stocks, Affirm, Okta, and Block stand out as top picks. Affirm, with a year-to-date return of -37%, remains strong in the Buy Now Pay Later (BNPL) space. Despite the downturn attributable to broader market fears, analysts affirm the strength of Affirm’s business model.
Credo Technology Group, which has seen a year-to-date increase of 71%, is also favored. Analysts note that fears surrounding a shift from copper to optical technology in data centers may be overstated, allowing Credo to benefit from ongoing investments in AI infrastructure.
Equifax, despite a -22% return over the past year, receives praise for its positive guidance for 2026, bolstered by the rising demand for credit data insights. Similarly, First Advantage, down by 53%, is positioned well within the highly regulated background check sector, which is less susceptible to AI replacement.
Other notable mentions include Fidelity National Information Services, with a -31% return, benefiting from its entrenched relationships with financial institutions, and HubSpot, which has been adversely affected by the narrative surrounding AI displacement yet remains strong due to its own AI product offerings.
Moody’s and S&P Global stand out as companies unlikely to face significant disruptions due to the essential nature of their credit rating services. Both firms are expected to maintain their positions thanks to their entrenched market presence.
Toast, a company integrating restaurant payments with software solutions, and Twilio, known for customer engagement tools, represent further examples of businesses capable of navigating the AI landscape. Each is well-placed to benefit from evolving market demands, despite experiencing recent stock declines.
As analysts continue to identify both potential pitfalls and opportunities among these tech stocks, the consensus leans towards a careful reconsideration of investment strategies. The current climate has transformed the market outlook, presenting both risks and potential rewards for savvy investors ready to “buy the dip” amidst the uncertainty surrounding AI advancements.
