Jacob Manoukian says computer chip stocks are trading at a discount

Jacob Manoukian, JPMorgan Private Bank U.S. head of investment strategy, says computer chip stocks are currently trading at a discount. Market prices show investors expect a big slowdown for companies that build data-processing chips. But JPMorgan believes large-scale cloud computing providers will soon spend more money on physical assets. "We think the catalyst is that hyperscale cap ex will get revised higher and that should start coming through this quarter." Sometimes a market bargain is just waiting for the big spenders to show up.