JP Morgan analysts say AI stocks could account for as much as half of Asia
index weight and may drive 70% of the region's 2027 earnings growth. They say
Asia's AI exposure is concentrated in hardware and expect supply tightness to
persist at least through 2028, a dynamic that would grant suppliers significant
pricing power. JP Morgan flags the most acute shortages in advanced logic chips,
chip packaging (Ajinomoto build-up-film/ABF substrates), semiconductor
equipment, high-end copper-clad laminates, HBM and high-speed optical
components. The bank projects the AI ecosystem will generate net profits above
$1 trillion and free cash flow around $700bn by 2028. JP Morgan retains
overweight ratings on technology and on Taiwan and Korea equities.
