JPMorgan’s Bob Michele Argues There Isn’t an AI Bubble, Says Market Is In Good Place Despite Stock Slide

JPMorgan’s Bob Michele remains optimistic despite last week’s stock market slide.

Michele, the chief investment officer at the financial giant’s asset management subsidiary, says in a new interview on CNBC that the market is “in a pretty good place.”

“The US economy is gliding into year-end in a pretty good environment right now. Corporate America seems to have absorbed the tariffs pretty well. The consumer’s doing pretty well. We do expect the Fed to come in and cut rates in December. That would be a nice tailwind as we head into 2026 and the One Big Beautiful Bill Act hits.” 

The CME FedWatch Tool, which generates probabilities using the 30-day Fed Funds futures prices, currently estimates there is only a 40.9% chance the Fed will cut the federal funds target rate by 25 basis points at the upcoming Federal Open Market Committee (FOMC) meeting in December.

Michele says the companies JPMorgan talks to are gearing up for capital expenditure in 2026, with new hiring and more investment into artificial intelligence (AI) projects.

“The lesson of the dot-com era is there was a bubble, it burst, we don’t think we’re in one now for AI, but companies didn’t stop spending on wifi, the internet and technology.”

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