J.P. Morgan Chase (JPM.US) is reaching a market capitalization of 1 trillion US dollars, and rival Bank of America shouted: It's still very cheap!

The Zhitong Finance App learned that J.P. Morgan Chase (JPM.US) is expected to become the first bank with a market capitalization exceeding 1 trillion US dollars. An analyst at Bank of America, its biggest competitor, said that this would make the financial giant's current stock price discount very attractive and not to be missed.

“Investors have underestimated the potential for J.P. Morgan Chase stock's valuation premium to expand relative to its peers as the stock is about to join the $1 trillion elite club,” Bank of America securities analyst Ebrahim Poonawala wrote in a note on Wednesday, adding that the bank, led by Jamie Dimon, could attract new investors, thereby triggering a “scarcity premium.”

Poonawala pointed out that the 11 S&P 500 stock companies with a market capitalization of over $1 trillion — including Nvidia, Google's parent company Alphabet, and Apple — all have much higher price-earnings ratios than J.P. Morgan. J.P. Morgan is expected to benefit “because it will be the only company outside the tech industry with a market capitalization of more than $1 trillion and a price-earnings ratio of only ten times more.”

He sees this bank as “one of the most attractive risk/reward opportunities in our coverage”. The question, he said, is whether investors will continue to evaluate the company “far below market valuations.”

Wall Street is divided over the further increase in J.P. Morgan's stock price. According to the data, although no analyst gave a “sell” rating, 18 analysts recommended “buy” and 15 others recommended “hold.” Meanwhile, the average target price of $375 means it will be difficult for the stock to break through the $1 trillion mark in the next 12 months. With a market capitalization of less than 450 billion US dollars, Bank of America is the second-largest bank in the US by market capitalization.

Poonawala believes J.P. Morgan is expected to achieve “outstanding profit growth” by leveraging its scale advantage and leverage in artificial intelligence, digital assets, and wealth management. He also said that Dimon is “one of the best CEOs in American business”, which is also a positive factor for J.P. Morgan.

J.P. Morgan shares rose 0.34% on Wednesday. The stock has accumulated a cumulative increase of 10% since 2026, with an annual increase of more than 25% for the previous three years.

Many investors have been waiting for Bank of America stocks to rise more sharply, and conditions are in place to further strengthen them, including a relatively stable economic situation and a booming AI-related loan business. Earlier, Jackson Square Capital partner Andrew Graham said that J.P. Morgan Chase is particularly capable of withstanding economic shocks.