JPMorgan: AI Productivity Gains Make It Worth Premium (NYSE:JPM)

JPMorgan: AI Productivity Gains Make It Worth Premium Summary JPMorgan (JPM) maintains its 'Buy' rating as fundamentals remain robust, and the post-Q3 slight dip was unjustified. Sell-side revisions strengthened: analysts lifted EPS forecasts for the next eight years, pushing price targets up and reinforcing my 2026 bullishness before Q4 earnings arrive. Management raised the 2026 expense outlook to $105B, framing it as growth, strategic investments, and inflation; I view it as productivity fuel for cards and payments. At Goldman’s conference, JPM cited ops productivity improving to ~6% annually via digital assistance, automation, and AI voice-evidence investments are working and could scale further. Valuation is rich: ~15x FY2026 versus ~12x history, but repeated 3-4% beats could normalize multiples; my 12‐month target is $345 plus roughly 2% dividends annually. JPM is a "Buy", still. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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