REAL-TIME GLOBAL RESEARCH
*J.P. Morgan Asia FTM 16 Jun 26: GUC: AI CPU expectations rise; Alchip: Trn3 ramp starts; L&T PT up as tail risk eases; ASEAN Eq Strat: Sigh of relief; CN Tanker Shipping: Time to revisit CSET; U/g Hengrui-H to OW. Mon Jun 15 2026
Research evidence excerpt
*J.P. Morgan Asia FTM 16 Jun 26: GUC: AI CPU expectations rise; Alchip: Trn3 ramp starts; L&T PT up as tail risk eases; ASEAN Eq Strat: Sigh of relief; CN Tanker Shipping: Time to revisit CSET; U/g Hengrui-H to OW. Mon Jun 15 2026
Asia Pacific Equity Research
This material is neither intended to be distributed to Mainland China investors nor to provide securities
investment consultancy services within the territory of Mainland China. This material or any portion hereof
may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.
Asia First to Market 16 June 2026
Top Stories
GUC (3443.TW, N – NT$4,815.00), Taiwan (Gokul Hariharan)
AI CPU expectations rise, Tesla outlook mixed; stay Neutral and raise PT to NT$4400
We raise estimates to reflect upward revisions in GUC’s AI CPU projects (primarily Google Axion) due to
strong demand from agentic AI workloads and increased bundle rates for CPUs. GUC is likely to remain the
back-end logistics partner for the next generation Google CPU project as well, which should drive continued
growth into 2028, even though gross margins remain under pressure. For Tesla, we believe that the AI5
project should be largely handled by GUC with mass production ramp in mid 2027, but AI6 is likely to move
back to Samsung Foundry. Future allocation for AI projects is more uncertain, given that Tesla is engaging
TSMC (AI 6.5), Samsung and Intel/TeraFab for this project. While GUC’s revenue outlook remains strong,
led by Google CPUs, we remain Neutral due to (1) continued downward pressure on gross margins due to
lower margin CPU engagement, (2) increasing competition for CPU projects as design service space sees
more aggressive pricing, and (3) lack of any CoWoS-based ASICs in GUC’s pipeline. Key upside risks are
The English excerpt is extracted automatically from the cited source page and may contain layout or recognition errors. It is never batch translated.
Open report viewer