# JPMorgan’s Gabriela Santos identifies assets to buffer AI volatility > Source: > Published: 2026-08-18 14:27:48+00:00 # JPMorgan’s Gabriela Santos identifies assets to buffer AI volatility The firm's chief market strategist for the Americas says investors can stay in the AI trade while building shock absorbers into their portfolios You don’t have to sell your AI winners to survive the next AI correction. That’s the core argument from Gabriela Santos, Managing Director and Chief Market Strategist for the Americas at J.P. Morgan Asset Management, who has been making the case that smart diversification beats wholesale retreat from the sector’s biggest theme. Santos has labeled the current stretch as the “revenge of diversification,” a phrase that captures her broader thesis: the AI trade is maturing, its beneficiaries are multiplying, and portfolios that spread exposure across geographies and sectors will weather turbulence far better than those concentrated in a handful of mega-cap names. ## The AI boom is broadening, and that changes the playbook For years, the AI investment story was essentially a bet on the Magnificent Seven. Santos argues that chapter is closing. The next wave of gains, in her view, will flow to a wider group of companies, particularly semiconductor firms across Asia, where she has flagged profit growth potentially reaching as high as 450%. Santos describes the current market environment as an “earnings supercycle” powered by AI technology. US equity valuations have actually eased despite strong stock performance, she notes, because earnings growth has outpaced price appreciation. In plain terms: stocks went up, but profits went up faster, so the price tag relative to those profits actually got cheaper. ## Where to build the buffer The practical advice Santos offers centers on geographic diversification. She has specifically pointed to Latin America, Europe, and Japan as regions that can serve as portfolio ballast when AI-concentrated positions get shaky. The February 2026 pullback serves as Santos’ exhibit A. AI-related assets took a significant hit during that period, and portfolios that had diversified beyond the usual suspects absorbed the blow more gracefully. Santos isn’t suggesting investors abandon AI exposure. Her framework keeps AI as a core theme while surrounding it with positions that behave differently during sector-specific dislocations. ## Concentration risk is the real enemy Santos’ emphasis on companies outside the prominent AI leaders suggests she sees meaningful value in what might be called the second and third derivative of AI adoption. The semiconductor supply chain in Asia stands out as a particularly interesting intersection of Santos’ themes, offering exposure to the AI earnings supercycle through a different risk profile than their US counterparts. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).