China Tech & APAC Internet - Q326 Results Quick Reads: China Local GPU, Apple Components, China Telecom

J.P. Morgan's APAC tech specialist sales note reviews Q3'26 results across China local GPU, Apple components and China Telecom. Cambricon (not rated) posted Q3'26 revenue of RMB3.5bn (+104% YoY) with net profit of RMB1.40bn (+148%), meeting the lowered bar, but inventory jumped RMB3.4bn to RMB11.7bn, likely memory-heavy, turning a meet into a miss in the current tape. The debate on China local GPUs is shifting from foundry/HBM chokepoints to demand elasticity, with pushback from tighter distillation usage and a meaningful local GPU price step-up as memory costs pass through; dip-buying interest remains limited. Two Apple supply-chain names missed seasonality: Lens Tech's Q3 net profit rose 16% QoQ, well below seasonality, blamed on FX and the shifting iPhone launch cadence, though management guided to a meaningful QoQ step-up in Q4 with the foldable launch and continued Q1 YoY growth;