J P M O R G A N Asia Pacific Equity Research 27 October 2025 Memory Market Update Addressing FAQs from investors and thoughts heading into 3Q memory earnings Korean memory makers are set to report earnings in the following week (SKH on the 29 October, 9AM local time and SEC on 30 October, 10AM) and we put out key FAQs from investors and what to expect heading into the earnings result. We believe 3Q earnings strength is well expected and believe investors should watch 2026 capex commentaries to gauge memory ...

Core Insights - Nvidia and OpenAI's strategic partnership will deploy at least 10 gigawatts of computing power starting with the Vera Rubin platform in late 2026, marking a significant step in AI infrastructure development [1][5] - The partnership provides immediate scale for OpenAI while ensuring Nvidia's multi-year revenue visibility, as OpenAI continues to develop custom chips with Broadcom for future deployment [3][5] Group 1: Partnership Details - Nvidia is set to invest up to $100 billion in the partnership, which secures OpenAI's training needs through 2028 while custom chips are still in development [5] - The deal aligns with the $500 billion Stargate project, providing concrete demand visibility for Nvidia's growth trajectory [4][5] Group 2: Competitive Landscape - Advanced Micro Devices (AMD) faces increased competition for OpenAI-scale wins, but continues to develop its MI300-class deployments and upcoming MI350 [6] - Nvidia has strengthened its ecosystem with a $5 billion stake in Intel and a custom x86 CPU partnership, enhancing its platform and foundry options beyond Taiwan Semiconductor [6] Group 3: Implications for Tech Giants - Major hyperscalers like Alphabet, Amazon, and Microsoft are now aware that their prominent AI peer, OpenAI, is closely tied to Nvidia through 2028, while they will continue investing in in-house silicon for cost control and strategic independence [7]

Group 1 - SoftBank Group Corp. shares increased by 9.98% to 17,905 JPY ($121.14), with a year-to-date gain of 93.90%, driven by investor optimism regarding its involvement in Oracle's AI infrastructure deals [1] - Oracle reported a remarkable $455 billion backlog in Remaining Performance Obligations (RPO), reflecting a 359% year-over-year increase, attributed to multi-billion-dollar contracts with AI companies [2] - The Stargate project, a collaboration between Oracle, OpenAI, and SoftBank, aims to establish extensive AI data centers in the U.S., requiring significant capital and cloud resources [3] Group 2 - Following Oracle's earnings report, analysts raised price targets significantly, with Piper Sandler increasing the target from $270 to $330 and Citizens JMP raising it to $342 [4] - Oracle's market capitalization reached $922.22 billion, making it the 12th most valuable public company globally, with a price-to-earnings ratio of 75.62 and a dividend yield of 0.61% [4]

Project Expansion - OpenAI 将通过在挪威建造新的数据中心，把 Stargate 项目扩展到欧洲 [1]