JPM | APAC THEMATICS - Tech: Positioning unwind to fundamental debate / 2x areas of focus / Colour & feedback from the floor...

Research evidence excerpt

JPM | APAC THEMATICS - Tech: Positioning unwind to fundamental debate / 2x areas of focus / Colour & feedback from the floor...

Specialist Sales

APAC Specialist Sales J P M O R G A N

28 July 2026

JPM | APAC THEMATICS - Tech: Positioning unwind to

fundamental debate / 2x areas of focus / Colour & feedback from

the floor…

Matthew See

+852 2800 8889

matthew.see@jpmorgan.com

APAC Thematics focuses on key macro views, market debates, and favoured investment themes.

Another tough tech tape... Korea Semis -14% and Japan Semis -12%. While many still see the unwind as positioning

degrossing and leverage unwinding from 2Q extreme highs, there’s also a growing debate on tech fundamentals. Here, it’s a

battle between the “greed” of near-term EPS growth & revisions vs the “fear” of the eventual unwind of the S/D deficit.

Two fundamental debates… (i) EPS revisions & growth, (ii) Valuations. For those looking at tech top-down, fundamental

debates focus on 2x areas. The bulls mostly focus on still strong revisions & growth (even as the delta slows). The bears

worry about peak margins, over-earning, & the risk of eventual normalisation (even if the timeline is still some way out). We

share context on both.

Feedback from the floor… what we are hearing & seeing. Taking inspiration from a note my colleague in EMEA Philippe

Lacroix puts out (“walk with me” - let me know if you want to be added)… also included below are latest thoughts from JPM

APAC Head of Equity Risk Trading, APAC Tech Spec Sales, Sales & Execution in Taiwan, and Execution in Korea.

Another brutal tape in tech today, especially Semis… Korea Semis -14%, Japan Semis -12% & Taiwan Semis -9%. This sell-off

that started a few weeks ago as a debate around positioning and leverage normalizing from 2Q25 extreme highs… has since