APAC Tech Strategy — September 2026 v2: No signs of AI demand abating

UBS's APAC Tech Strategy report sees no signs of AI demand abating. Three key debates: (1) Is the AI cycle sustainable? Yes—visibility is improving into 2028, agentic AI is taking off as the major inflection point in AI adoption, and monetization is improving, with hyperscaler/neocloud OCF forecasts raised 30% for 2027; the OCF-capex funding gap remains the No.1 risk factor but should be manageable. (2) Is the memory upcycle sustainable? Yes—UBS now sees the DRAM upcycle extending towards 2Q28 and NAND to 4Q27;