Memory Market Update: In-between volatility and fundamentals: What to focus on heading into CY2Q26 earnings result season

Research evidence excerpt

Memory Market Update: In-between volatility and fundamentals: What to focus on heading into CY2Q26 earnings result season

J P M O R G A N Asia Pacific Equity Research

24 June 2026

Memory Market Update

In-between volatility and fundamentals: What to focus

on heading into CY2Q26 earnings result season

Memory share prices have risen sharply over the past 1-3M (+44-184% vs SOX: Technology - Semiconductors

AC20-88%, as of 23 June close), while concurrently remaining volatile due to non- Jay Kwon

fundamental factors, in our view. In the upcoming earnings season, we expect (82-2) 758-5725

investors to monitor long-term agreement (LTA) developments and memory jay.h.kwon@jpmorgan.com

content per rack trends, which have recently been downsized due to supply J.P.BranchMorgan Securities (Far East) Limited, Seoul

shortages. Although LTA negotiations are taking longer than expected, we expect

Sangsik Lee

announcements in 2H26 to pave the way for a memory valuation re-rating. We (82-2) 758 5146

reiterate our ‘higher for longer’ memory upcycle view and remain constructive on sangsik.lee@jpmorgan.com

the memory stocks. We remain constructive on major Asian memory names (SEC J.P. Morgan Securities (Far East) Limited, Seoul

Branch

[OW] and Kioxia [OW] .

Neelay Y Kamath

• Tepid LTA announcements so far; Expectations rolled over to 2H. Our (91-22) 6157 3764

belief in LTA paving the way for a memory valuation rerating remains neelay.kamath@jpmchase.com

J.P. Morgan India Private Limited

unchanged, but we acknowledge the reticent memory LTA announcements

since May (report). We attribute the silence to memory makers being prudent

on LTA terms (price negotiations, protection measures, % of prepayment, etc.),

but also highlight the ongoing corporate governance issues that may have