For two years, the Magnificent 7 has been the only trade that mattered.
JPMorgan's top equity strategist just said the smart money is looking elsewhere - and not at the next AI winner.
Paul Quinsee, JPMorgan Asset Management's Global Head of Equities, told Bloomberg Television that international value stocks are now as far from technology and the Magnificent 7 as you can get.
His pitch: a portfolio of decent companies trading at roughly 11 times earnings, with tech making up just 3% to 4% of the basket.
That's a different bet from the S&P 500, where the biggest tech names alone account for more than a third of the index.
No AI hype, no chip names. Just steady, profitable companies in Europe, Japan, and other markets US investors have ignored for a decade.
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For most of the past decade, "diversify out of US tech" was a losing trade as the Mag 7 kept running and international stocks kept lagging. Anyone who tried to get clever got burned.
JPMorgan's broader 2026 outlook backs up Quinsee's view, flagging Europe, India, and Japan as areas of opportunity. The firm has also been pointing to themes like infrastructure and electrification beyond the AI trade.
When one slice of the market trades at 30+ times earnings and another trades at 11, that gap eventually pulls returns back toward the cheaper side.
The catch: this same call has been wrong for years. It only pays off if the gap actually starts to close, and that timing has been hard to predict.
This isn't a call that AI is over. It's that the AI-fueled run in US tech may finally be wide enough to create a real payoff for the rest of the world.
The relative-value setup hasn't looked this lopsided in years.
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