JPMorgan: AI stocks may drive 70% of Asia's profit growth by 2027, supply tightness may persist until 2028

BlockBeats news, October 12: JPMorgan analysts said AI stocks now account for as much as half of the Asian index weighting, and the sector is expected to drive 70% of the region's earnings growth by 2027.

The analysts said in a report that Asia's AI exposure is mainly concentrated in hardware, and supply tightness is expected to last at least until 2028. This will give related companies significant pricing power. They added that the areas expected to face the most severe shortages include advanced logic chips, chip packaging, semiconductor equipment, Ajinomoto build-up film substrates, high-end copper-clad laminate materials, HBM, and high-speed optical components.

JPMorgan expects that by 2028, the entire AI ecosystem's net profit will exceed $1 trillion, with free cash flow reaching $700 billion. JPMorgan maintains an "overweight" rating on tech stocks, Taiwan stocks, and South Korean stocks.