APAC Technology - Memory / AI Development

J.P. Morgan APAC Specialist Sales technology note (15 Sep 2026). Memory remains the most frequently questioned sub-sector, with divided views on 'higher-for-longer' pricing versus memory de-spec concerns across HBM and now NAND solutions, following DeepSeek V4.1's significant KV cache reduction amid industry supply, specifically from YMTC. Gokul notes 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 and remains governed by investor positioning. A divergence stands out between TEL, where bulls cite HBM/DRAM order strength and N2 logic gains versus skeptics of margin improvement as management may hit their 50% GM target earlier than expected into F4Q27 (Mar '27) vs F1H28;