＜Research＞JPM Thinks Up-cycle of Asian Techs Not Yet Over; Top Picks TSMC, ASMPT (00522.HK) & Others

　　JPMorgan commented in a report that the correction in Asian tech stocks over the past 2 weeks has raised concerns about whether the up-cycle driven by generative AI is over, which the broker believed it is not. The current correction is similar to the mid-cycle corrections in August-September 2023 and April 2024, and it is believed that AI hardware spending will continue to grow over the next one to two years. The non-AI tech sector has been slow to recover, but inventories are gradually being eliminated and market demand is returning.

　　JPM considered that overall Asian tech valuations, while high, are not excessive or reflective of a peak in the cycle, and that corporate earnings forecasts will continue to be revised upwards. After the recent significant correction, the broker believed investors could re-examine stocks with high earnings growth, including TSMC, Hon Hai, SK Hynix and Quanta.

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　　In addition, the expansion of AI applications to edge devices will benefit Unimicron, Largan and Luxshare. Stocks with strong fundamentals that are clearly underperforming may also come back to investors' attention, such as ASMPT (00522.HK) +1.250 (+1.565%) Short selling $21.14M; Ratio 15.820% and Alchip.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-29 12:25.)

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