Summer Reading: TMT Reference Sheet & Ratings Changes

Research evidence excerpt

Summer Reading: TMT Reference Sheet & Ratings Changes

Erica R Spear AC North America Credit Research

(1-212) 834-4143 13 July 2026 J P M O R G A N

erica.spear@jpmchase.com

reducing the scarcity value that has historically supported the sector’s tight valuations.

With limited transparency around future financing plans and investors increasingly

pricing in the risk of the next outsized transaction, supply fatigue is becoming a more

persistent headwind. We expect this to remain an important driver of relative

performance unless issuers become more transparent with their intentions, such

that supply becomes more predictable or funding requirements begin to moderate.

• We are downgrading Dell Technologies to Neutral from Overweight as the recent rally

in spreads has reduced the relative value opportunity despite our continued constructive

view on the name. We continue to expect Dell to outperform many of its peers given its

disciplined financing policy, improving business mix, and favorable positioning within

the AI infrastructure buildout. However, spreads have now tightened to a level that we

believe more fully reflects these strengths, limiting the potential for excess returns. Risks

to our rating include stronger than expected AI-driven demand and sustained de-levering,

or, conversely, larger shareholder returns, debt-funded M&A, or a deterioration in

enterprise IT spending.

• We are downgrading Deutsche Telekom’s USD notes to Neutral as spreads have

continued to outperform. While we continue to view the company as a high-quality

defensive credit supported by resilient cash flow generation and the strength of T-Mobile

U.S., current valuations leave limited room for further spread compression, particularly

following the recent upgrade to single-A.