On Investors’ Minds - APAC Edition A strong Q3 for Asia Pacific earnings: AI demand leads the way
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Dec 5, 2025 In a deep dive into the booming Q3 earnings, Adrian Wong, a Global Market Strategist at J.P. Morgan, shares insights on the strong demand for AI-related hardware driving growth in Taiwan, Korea, and Japan. He discusses the risks APAC tech faces from U.S. policies and the rising data center infrastructure in China and Southeast Asia. Adrian also highlights the impact of AI on cloud strategies and internet advertising monetization. Plus, he recommends a savvy investment strategy combining high-growth tech with steady income assets.
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Hardware Powers Asia's AI Earnings
- Asia's tech hardware is powering global AI demand with constrained supply driving pricing power.
- Taiwan, Korea and Japan firms show above-estimate earnings and sustained margin gains.
Demand Cascades Up The Supply Chain
- AI hardware demand is cascading upstream to semiconductor equipment makers, boosting orders and inquiries.
- Suppliers face near-term shipment ceilings but gain pricing power and margin expansion.
U.S. Data Center Risk For APAC Tech
- Asia's tech revenue is concentrated with ~38% dependent on U.S. demand, creating exposure to U.S. data center trends and constraints.
- Supply, energy or policy disruptions in the U.S. could ripple through APAC tech earnings.