JPMorgan Trading Clients Are Buying Commodities on AI Build-Out

As artificial intelligence rolls out around the globe, will it drive inflation or deflation? The answer is both — one and then the other, according to JPMorgan Chase & Co.’s new global co-heads of sales and research.

This year, investors betting on AI’s initial impact are piling into commodities, anticipating that the infrastructure needed for the technology will bolster demand for energy and equipment, Claudia Jury and Scott Hamilton said in their first interview since taking over. Such wagers are helping buoy prices, despite the Federal Reserve’s campaign to rein them in, the managers said. The Bloomberg Commodity Spot Index advanced almost 8% this year through Tuesday.

“The build-up is inflationary,” Jury said, “because of the infrastructure and everything you’re going to need to rely on in the future in terms of power, CPU, grids — things like that.”

Later it will be deflationary as companies use AI to become more efficient. “To me this is a multi-year play,” she said.

The technology — and how to bet on it — is top of mind for clients of Wall Street’s biggest trading shop as more than 650 of them flock to Paris this week for the firm’s largest-ever Global Markets Conference. Interest rates, private credit and geopolitics are also up for discussion, Jury and Hamilton said.

JPMorgan’s own contingent includes Chief Executive Officer Jamie Dimon, President Daniel Pinto, commercial and investment-bank co-heads Jenn Piepszak and Troy Rohrbaugh, and other senior leaders. Many are new to their roles after a series of leadership moves earlier this year.