US Hardware and Semiconductors Sector Specialist Commentary

Latest edition · July 31, 2026

JPM US Hardware Semiconductors Sector Specialist Commentary

The report provides a daily update on US Hardware and Semiconductor market conditions, emphasizing record hyperscaler capex and signs of a potential market bottom following recent sell-offs.

This commentary provides a high-level overview of the TMT sector, highlighting the rise in 2026 hyperscaler capex to ~$750 billion as AI demand continues to outpace capacity. It analyzes recent market positioning, noting signs that the recent de-grossing and momentum-based sell-off may be reaching an exhaustion point. Additionally, it covers corporate developments, including AAPL's supply-constrained earnings report, Amazon's strong cloud outlook, and upcoming management events for institutional investors.

Key takeaways from the latest edition

• 1.Hyperscaler 2026 aggregate capex has risen to ~$750b, driven by continued robust AI demand outstripping capacity.
• 2.Signs of market extremes suggest the recent de-grossing and momentum sell-off may abate soon.
• 3.AAPL faced supply and cost headwinds in its F3Q26 print, with memory cost pressure impacting gross margins.

What this series covers

• Key Highlights
• AAPL: Spec & Analyst Takeaways - Supply/Cost Headwinds Bite into Sep-Q, Leaving Questions
• Macro : Top of the Agenda
• News & Reads
• JPM Global Hardware/Semis Research
• J.P. Morgan TMT Contacts
• Disclaimers

Edition archive

• JPM US Hardware Semiconductors Sector Specialist Commentary

  July 31, 2026

• JPM Chips for Break 2026 07 27 5383140

  July 27, 2026

• JPM MU Buyside Bars, Tech HW Pre-Q Check-ins, HDDs, AI Capex, WFE TAM, AAPL, AVGO

  June 21, 2026