Global Banks Back IT Stocks: HSBC, JP Morgan Dismiss AI Threat to Software

• HSBC and JP Morgan express strong confidence in IT stocks, dismissing fears that AI will replace software engineers and companies.
• HSBC Global Investment Research calls the fear 'irrational,' stating AI is a 'learning algorithm' that enhances software, not replaces it.
• JP Morgan likens IT companies to 'plumbers of the tech world,' essential for integrating AI-generated code with complex legacy systems.
• Both banks emphasize that IT giants possess 'institutional context' and deep client relationships, which AI cannot replicate.
• They believe AI will empower existing business models and expand the market for software companies, not disrupt them.