JPMorgan Identifies 18 Mispriced Tech Stocks Shielded from AI Threats

Feb 18, 2026, 2:39 AM

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JPMorgan Asset Management has recently identified 18 technology stocks that it considers mispriced and resilient against the disruptions caused by artificial intelligence (AI). As AI continues to evolve and impact various industries, these stocks are positioned to weather the storm and are available at attractive valuations.

The firm emphasizes that the focus should be on "quality" stocks, which are characterized by strong and consistent cash flow, experienced management teams, and competitive advantages. Historically, such stocks have shown a tendency to outperform during periods of market downturns, making them a safer investment choice amidst the current volatility.

Despite the recent sell-off in tech stocks driven by fears surrounding AI, JPMorgan asserts that this presents a unique buying opportunity. The firm's analysts argue that the current market environment is ripe for investors to capitalize on these high-quality stocks, which tend to rebound sharply following periods of underperformance.

Historical Context of Quality Stocks

JPMorgan's analysis indicates that quality stocks have lagged behind more speculative investments over the last year, marking one of their worst performance streaks in nearly two decades. Notably, during past downturns, such as the lead-up to the global financial crisis from 2003 to 2008, quality stocks eventually rebounded significantly as investors shifted focus to fundamentals.

According to the bank, during the last 30 years, quality stocks have outperformed 78% of the time during market drawdowns, with a median excess return of 3.4 percentage points. This historical data supports the notion that quality stocks are a prudent choice for investors looking to navigate through turbulent market conditions.

Recommendations for Investors

Among the recommendations from JPMorgan, investors are advised to be cautious of stocks with heavy exposure to AI, as these could be more vulnerable during market corrections. In particular, the Invesco S&P 500 Quality ETF (SPHQ) is cited as having limited exposure to AI stocks and includes significant holdings in established companies such as Costco, Visa, and Procter & Gamble.

The bank's identification of the 18 tech stocks includes companies that have shown resilience and adaptability to changing market conditions. This includes firms that are expected to benefit from the ongoing transformation driven by AI without being overly reliant on it.

Conclusion

In summary, JPMorgan's focus on quality stocks amid the AI disruption highlights a strategic investment approach for market participants. By concentrating on companies with robust fundamentals, investors may find opportunities to capitalize on the current market mispricing. The emphasis on quality over speculation may provide a safer harbor as the tech landscape continues to evolve.

As the market navigates through these changes, JPMorgan's insights could guide investors in making informed decisions that align with their risk tolerance and investment goals. The identification of these 18 mispriced tech stocks presents a potential pathway for those looking to invest in resilient companies poised for future growth.

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