Bank strategists at JPMorgan, Goldman and Morgan Stanley said Friday’s tech sell‑off won’t derail the AI‑fuelled rally that has lifted the market for nine weeks. They point to earnings growth that should keep the Nasdaq 100 and broader indices buoyant through year‑end, after the semiconductor sector posted its steepest slide since 2020.

The Philadelphia Stock Exchange Semiconductor Index fell 5.2%, its largest one‑day decline since the pandemic, while the Nasdaq 100 slumped 4.8% on the same session. The tumble erased roughly $200 billion in market value, sparking worry that lofty AI valuations could be overstretched, among investors who fear a correction could spill into other sectors.

Despite the sharp dip, strategists argue the underlying earnings trajectory remains solid, and cash‑rich tech firms are positioned to ride out volatility. They expect the rally to resume once balance sheets and guidance confirm sustained growth, leaving the market upside intact for the remainder of 2026.

Investors should watch upcoming earnings reports from chipmakers and cloud providers, as their results will test whether the AI hype translates into profit. A sustained beat could reinforce confidence, while a miss may prompt a broader pullback, forcing banks to reassess their year‑end targets in the S&P 500.