Summary of Key Points from the Conference Call Industry Overview - **Industry**: Semiconductor and Memory Market, particularly focusing on DRAM and NAND sectors - **Key Focus**: AI investment trends and their impact on memory demand Core Insights 1. **AI Investment Concerns**: Investors are worried about a potential AI bubble, but the overall sentiment remains positive regarding AI development and demand growth [1][7] 2. **Investment Continuity**: There are no signs of delays or cancellations in AI investments, with growth driven by an increase in paid users and context generation [2][7] 3. **Demand Dynamics**: While there are downside risks in B2C demand (smartphones and PCs), demand from servers, HBM, SOCAMM2, and eSSD is expected to offset these declines [2][3] 4. **Memory Capacity Growth**: DRAM supply is projected to grow by 21% year-over-year in 2026, with a 7% increase in capacity. Korean capex is expected to rise by 19% year-over-year to KRW80 trillion in 2026 [2][4] 5. **Emerging Catalysts**: SOCAMM2 and eSSD are identified as key growth drivers, with SOCAMM2 expected to account for 10% of DRAM demand by 2027, up from less than 1% in 2025 [3][7] Company Recommendations 1. **Preferred Stocks**: Samsung Electronics and SK Hynix are rated as "Buy" due to their undervaluation and improving return on equity (ROE) [4][7] 2. **Target Prices**: - Samsung Electronics: Target price of KRW170,000, implying a 79.3% upside from the current price of KRW94,800 [4][72] - SK Hynix: Target price of KRW850,000, suggesting a 63.1% upside from the current price of KRW521,000 [4][72] Market Dynamics 1. **Commodity DRAM Shortage**: A shortage in commodity DRAM is anticipated, with margins expected to improve, enhancing the negotiation position of DRAM makers [3][7] 2. **HBM Market Growth**: The HBM market is projected to grow by 58% year-over-year in 2026, with HBM4 maintaining a price premium of 30-40% [3][7] 3. **Capex Trends**: Total capital expenditure (capex) for global cloud service providers (CSPs) is expected to reach USD510 billion in 2026, a 30% year-over-year increase [23][27] Risks and Considerations 1. **Downside Risks**: Potential risks include further appreciation of the KRW, global trade restrictions, and economic slowdowns affecting consumer and enterprise IT demand [72] 2. **Market Penetration**: Chinese NAND makers pose an ongoing risk, although their penetration into the eSSD market is expected to take time [2][3] Additional Insights 1. **AI Server Demand**: AI servers are projected to significantly contribute to eSSD demand growth, with a CAGR of 85% from 2025 to 2027 [49][50] 2. **Long-term Outlook**: The DRAM cycle is expected to remain strong until at least 2027, with continued investment in AI infrastructure by major players [4][7] This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the semiconductor and memory market dynamics, investment recommendations, and potential risks.

BLOOMBERG TECH ASIA IS LIVE WITH SHERY AHN IN TOKYO AND ANNABELLE DROULERS IN HONG KONG. SHERY: WE ARE FOCUSED ON THE MULTIBILLION-DOLLAR CIRCULAR DEALS FUELING CONCERNS OF A BUBBLE IN THE GLOBAL AI INDUSTRY. WHERE DO ASIA'S TECH TITANS FIT INTO THE AI MONEYMAKING MACHINE.ANABEL: WE HEAR FROM THE CHAIRMAN OF NVIDIA AND OPENAI PARTNER FOX ON ON WHETHER HE IS WORRIED ABOUT THE FUTURE OF MONETIZATION OF AI. MORE OF OUR INTERVIEW, COMING UP. SHERY: WHILE SOME OF ASIA'S TECH PLAYERS STAND TO BENEFIT FROM THE AI ...

Key Takeaways from the China 2H25 CIO Survey – Renewed Optimism Industry Overview - **Industry**: Technology in Asia Pacific, specifically focusing on China - **Survey Focus**: CIOs' IT spending expectations and trends for 2025 and 2026 Core Insights - **Optimism in IT Spending**: CIOs have raised their 2025 IT budget growth forecast by 160 basis points to 7.4%, with expectations for 2026 indicating a robust growth of 12.6% YoY, surpassing the average growth of 11.7% from 2020-2025 [7][39] - **AI and Cloud Migration**: Significant optimism is driven by advancements in Generative AI (GenAI) and cloud migration, with 62% of CIOs expecting a substantial impact from AI in 2026 [7][50] - **Budget Allocation**: 57% of CIOs plan to allocate an average of 3.8% of their IT budgets to physical AI investments, projected to increase to 7.8% over the next three years [7][52] Sector-Specific Insights - **Software and IT Services**: The sector shows the highest growth expectations, with 9.9% for 2025 and 13.1% for 2026. The industry view has been upgraded to In-Line from Cautious due to normalization of budgets and potential steady growth recovery [25][39] - **Semiconductors**: Structural growth is anticipated from AI, with a preference for foundry, OSAT, and memory sectors over chip design. Localization trends are expected to benefit companies like SMIC and Naura [25][26] - **Hardware**: Expectations for spending are less optimistic, particularly for PCs, while AI-related hardware is expected to see growth due to increased demand for AI workloads [30][68] - **Internet Sector**: Favorable outlook for Alibaba and Tencent due to potential AI upside, with public cloud spending expected to stabilize and regain momentum in 2026 [31][69] Investment Implications - **Preferred Stocks**: Companies such as Beisen (software), TSMC (semiconductors), and various hardware manufacturers are highlighted as preferred investments due to their strong positioning in AI and cloud trends [34][70] - **Cautious Outlook on Traditional Tech**: Traditional tech sectors, particularly the PC supply chain, are viewed with caution due to margin pressures from rising memory prices and less defensive nature [25][68] Additional Observations - **CIO Confidence**: The up-to-down ratio for budget revisions improved to 3.2x, indicating increased confidence among CIOs regarding IT spending [39][49] - **Long-term Growth Factors**: 47% of CIOs expect IT spending to grow as a share of revenue over the next three years, with business expansion cited as the primary reason for increasing IT budgets [15][42] - **AI Prioritization**: AI/ML remains the top priority for CIOs, despite a slight decrease in immediate spending expectations, with a focus on customer-facing applications for revenue growth [61][62] This summary encapsulates the key findings and implications from the China 2H25 CIO Survey, reflecting a renewed optimism in technology investments driven by AI and cloud migration trends.

Summary of J.P. Morgan's Global Markets Strategy Conference Call Industry Overview - **Focus**: Asian equity markets, particularly China, Korea, and India - **Outlook for 2026**: Bullish on Asian equities with expectations of moderate to exceptional gains driven by policy support and liquidity [2][41][42] Key Points 1. Market Valuations and Positioning - Equity market valuations are currently high, with positioning in regional equities above the 80th percentile since July [2][41] - Despite high valuations, the expectation is for Asian equities to deliver gains due to supportive policies and liquidity [2][41] 2. China Market Recovery - China is in the early stages of recovery from a ~4-year downcycle, with acceptable valuations and light positioning [5][42][88] - Multiple support factors for China include: - AI adoption and power generation advantages - Innovations in robotics, biotech, semiconductors, and fintech - Consumption and property support measures - Rising shareholder returns and domestic liquidity reallocation [5][42][88][89] 3. AI Sector Insights - AI-heavy stocks (~35% of MXASJ) present a mixed risk-reward scenario, with concerns about monetization and potential commoditization [5][41] - The balance of risk and reward suggests limited incentive to increase exposure to AI stocks at this time [5][41] 4. Sector and Country Allocations - **Overweight (OW)**: Korea, Hong Kong/China, India, Consumer Staples, Materials, Financials [5][41][46] - **Neutral**: Taiwan, Technology, Industrials, Real Estate [5][41][46] - **Underweight (UW)**: ASEAN, Utilities, Energy, Healthcare [5][41][46] 5. Earnings Growth and Sector Contributions - Approximately 70% of the EPS consensus growth forecast for 2026 is driven by sectors in Korea, Taiwan, China, and India [14] - A synchronized acceleration of year-on-year growth across markets is anticipated for the first time since 2021 [14] 6. Policy Environment - Global easing policies are expected to support earnings and inflate equity valuations beyond normal levels [57][60] - The US has shifted from austerity to expansionary fiscal policies, which is expected to have a positive impact on Asian markets [58][68] 7. Long-term Themes - Key long-term themes expected to gain traction in 2026 include: - Governance improvements driving re-rating - Localization of Asian equity markets - Stablecoins as a new financial frontier [5][46] 8. Market Index Targets - End-2026 index targets for MXASJ are set at 1025 (base case), 1200 (bull case), and 800 (bear case) [7][54] 9. Risk Considerations - The potential for large gains in 2026 is viewed as substantially higher than the risk of large losses, particularly in the context of China's recovery [5][42][88] Additional Insights - The report emphasizes the importance of monitoring governance reforms in Korea and the ongoing developments in China as critical factors influencing market performance [5][41][42] - The strategic case for allocation to Asia is strengthened by recent improvements in long-term headwinds such as margins and valuations [14][41] This summary encapsulates the key insights and recommendations from J.P. Morgan's conference call, focusing on the outlook for Asian equity markets and the specific dynamics affecting China, Korea, and India.

November 26, 2025 05:00 AM GMT ASML Holding NV | Europe Riding the DRAM Wave into a Bright FY26; Move to Top Pick | What's Changed | | | | --- | --- | --- | | ASML Holding NV (ASML.AS) | From | To | | Price Target | €975.00 | €1,000.00 | | Top Pick Added | CDNS.O | ASML.AS | As we exit the Q3 reporting season, we see positive momentum for litho demand at ASML over FY26/27. DRAM spend is strong, as is the spend in foundry. DUV is slowing, but margins may still be fine in FY26. We raise our PT to €1,000, movi ...

Group 1: Trade Deal with Taiwan - The Trump administration is negotiating a trade deal with Taiwan that may involve the island renewing its investment in semiconductors and advanced technology in the U.S. [1] - Major Taiwanese chipmakers, including TSMC, are expected to expand operations in the U.S. and train more American workers as part of the potential deal [2] - In exchange for the tech investment, the Trump administration may reduce the current 20% tariff on other Taiwanese goods [2] Group 2: Geopolitical Context - The negotiations with Taiwan occur amid heightened tensions following Japanese Prime Minister Sanae Takaichi's strong defense of Taiwan's independence, suggesting military response from Japan in case of a Chinese attack [6] - Chinese officials reacted strongly to Japan's statements, summoning Japan's ambassador and warning against travel to Japan [7] - China's defense ministry asserted that any Japanese intervention would not protect Taiwan, indicating the seriousness of the geopolitical situation [7]

Let's stick with the tech trade this morning. Joining us today is Janice Henderson's head of technology research and portfolio manager, Denny Fish. Denny, it's good to have you.Thanks for the help. We definitely need it because I was just thinking all of these discussions are getting so rich. I mean, we've talked about the reliability of LLMs, debt and depreciation, circular financing, and now TPU competition.Is that changing your models or you have you has everyone been all over this. >> Yeah. know it's ac ...

Core Insights - Shares of Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) reached an all-time high of $311.37 last month, driven by a strong third-quarter report and increased revenue guidance [1] Company Summary - TSMC's stock performance reflects investor confidence following a robust financial report [1] - The company has provided an optimistic revenue outlook, contributing to the surge in share price [1]

Taiwan Semiconductor Manufacturing Co said on Tuesday it had filed a lawsuit in the Intellectual Property and Commercial Court against its former Senior Vice President Wei-Jen Lo, who recently joined ... ...

Investment Rating - The report reiterates a Buy rating on TSMC as the leading Cloud/Edge AI foundry [4] - ASE is also rated as a Buy due to its position as a key beneficiary of advanced packaging and testing [4] - GPTC is upgraded to a Buy with a new price target of NT$1,800, implying a 35% upside [4][22] Core Insights - TSMC's N3 capacity is forecasted to reach 170kwpm by the end of 2026, up from 120kwpm at the end of 2025 [1] - Cloud AI is expected to account for 35-40% of N3 demand in 2026, with smartphones and PCs making up 60-65% [1] - CoWoS capacity is anticipated to be tight in 2026, with TSMC likely to accelerate capacity expansion [2] - Demand forecasts for CoWoS have been raised significantly for Nvidia (13% increase), AMD (56% increase), and Broadcom [3] Summary by Sections N3 Foundry Supply-Demand Analysis - TSMC's N3 capacity is projected to increase to 170kwpm by end-2026 from 120kwpm at end-2025 [1] - Cloud AI products are expected to represent 35-40% of N3 demand in 2026, with other devices accounting for 60-65% [1] - N3 utilization is expected to be tight, particularly in Q4 2026 [1] CoWoS Capacity and Demand - CoWoS capacity is forecasted to reach 110kwpm by Q3 2026, with potential upside in late 2026 [2] - Demand for CoWoS from Nvidia is expected to reach 3 million units in 2026, with AMD's demand forecast raised by 56% [3] - Broadcom's CoWoS demand is projected to increase to 260-280k units in 2026, up from 90-100k in 2025 [3] Stock Recommendations - TSMC's capex for 2026/27 is raised to US$50bn/52bn from US$46bn/50bn, with a price target increase to NT$1,800 [4] - ASE is highlighted as a key beneficiary of advanced packaging and testing [4] - GPTC's long-term earnings CAGR is forecasted at 20% over 2027-29, with a significant market share in advanced packaging [22]