JPM: APAC Technology - Memory / AI Development

Memory remains the most frequently questioned sub-sector by investors, with divided views on 'higher-for-longer' pricing versus memory de-spec concerns across HBM and now NAND solutions, amid industry supply notably from YMTC. Bandwidth and interconnect have replaced pure memory capacity as the critical bottlenecks. SPE historically trades as a second derivative of peaking memory names and/or pricing. Within SPE, a divergence stands out between TEL, where bulls cite HBM/DRAM order strength and N2 logic gains versus skeptics on margin improvement as management may hit the 50% GM target earlier than expected into F4Q27 versus F1H28, and Lasertec, the most highly requested name last week, as the company believes an additional ~3 EUV layers will need Actinic Inspection Tools once qualified at TSMC's A14 process with POs expected in CY27, plus a reset of FY6/27 investor order expectations from ~Y400bn to a Y350bn midpoint. On AI development, US TMT specialist notes that Recursive Self-Impro