Asia Technology Outlook

研报英文原文证据摘录

Asia Technology Outlook

Investment Summary

Valuation and Financial metrics comparison

Source: Bloomberg Finance L.P., Company data, J.P. Morgan estimates. Prices as of July 3rd, 2026.

Investor positioning & feedback: Fundamentally bullish but rising concerns AI Hardware: MLCC benefits from AI proliferation (from server) and

on sustainability of cycle (mismatch between CSP earnings/spending vs. continued EV traction, ASP tailwind likely. All segment ABF substrate seeing

semi/hardware earnings). Memory is well held but may see some risk off stronger demand and pricing. MLB demand also very strong. Stock risk-

trade sentiment before 2Q26 print during temporary lack of catalyst season. reward is different (AI exposure is key to our stock view). We have OW on

Shortage thesis sectors (MLCC/Substrate) inside tech hardware continues to SEMCO, LGIT and ISU Petasys vs. Leeno (N) and SKC (UW).

perform well across food chain. Smartphone demand tepid. Semi RV interest

Cyclical Hardware: Improving iPhone EMS build in the near-term positive to remains high but overall corporate governance reform progress muted in NT.

LGD (N), but rising BOM cost pressure could weigh on 26E margin. Core

Memory: Token economics, stronger AI computation demand, and heavier earnings and AIDC exposure to LGE good but we are cautious on Robotics

memory intensity server architecture drive five-year up-cycle. CPU strength is growth expectation and stay Neutral.

additional demand tailwind. Durability of earnings is critical point and more

Relative Value: Little catalysts in the NT post third commercial code event LTA will help get a confidence for re-rate. CSP capex spending is key watch

and all eyes are on relative semi value to each holdco.