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The upward cycle of the AI PCB industry chain remains unchanged, production capacity and execution are the key (J.P. Morgan)

2026-07-14·ima-daily5min-0714-02-b25467872d

Street Signal | The upward cycle of the AI PCB industry chain remains unchanged, production capacity and execution are the key (J.P. Morgan)

After participating in a survey of China's AI PCB industry, JPMorgan Chase believes that despite the noise in the market, the AI upward cycle is still intact. The key is that the bottleneck of the supply chain has shifted from technology to production capacity and execution.

The production capacity expansion and delivery capabilities of leading manufacturers have become the core of the competition for market share. Through on-site research, the report confirmed the strong momentum of downstream demand (especially from cloud computing giants) and no order cuts.

This means that PCB manufacturers that can quickly expand production capacity and ensure yield will receive the greatest growth dividends. Market concerns about the slowdown in AI capital expenditures have been exaggerated, and the actual prosperity of the industry chain is much higher than expected.

One sentence conclusion: AI's demand for high-end PCBs is still strong, and the industry focus has shifted from technology verification to production capacity competition. Companies with expansion capabilities and efficient execution will stand out.

Good/bad: Good for leading companies in the AI PCB industry chain, such as Shanghai Electric Co., Ltd., Shennan Circuit, etc. The current market concerns about the "AI bubble" have been partially reflected in the stock price, but the strong orders and capacity expansion plans have not yet been fully priced by the market. Catalysts:

1) The 3Q26 performance of leading PCB companies, focusing on their quarter-on-quarter revenue growth and capacity utilization data;

2) The next quarter capital expenditure guidance of cloud service providers (CSP) such as Microsoft and Google;

3) The release of new AI server platforms (such as NVIDIA's next-generation GPU) will directly drive high-end PCB demand.

Full text

The upward cycle of the AI PCB industry chain remains unchanged, production capacity and execution are the key (J.P. Morgan)

After participating in a survey of China's AI PCB industry, JPMorgan Chase believes that despite the noise in the market, the AI upward cycle is still intact.

After participating in a survey of China's AI PCB industry, JPMorgan Chase believes that despite the noise in the market, the AI upward cycle is still intact. The key is that the bottleneck of the supply chain has shifted from technology to production capacity and execution. The production capacity expansion and delivery capabilities of leading manufacturers have become the core of the competition for market share. Through on-site research, the report confirmed the strong momentum of downstream demand (especially from cloud computing giants) and no order cuts. This means that PCB manufacturers that can quickly expand production capacity and ensure yield will receive the greatest growth dividends. Market concerns about the slowdown in AI capital expenditures have been exaggerated, and the actual prosperity of the industry chain is much higher than expected. One sentence conclusion: AI's demand for high-end PCBs is still strong, and the industry focus has shifted from technology verification to production capacity competition. Companies with expansion capabilities and efficient execution will stand out. Good/bad: Good for leading companies in the AI PCB industry chain, such as Shanghai Electric Co., Ltd., Shennan Circuit, etc. The current market concerns about the "AI bubble" have been partially reflected in the stock price, but the strong orders and capacity expansion plans have not yet been fully priced by the market. Catalysts: 1) The 3Q26 performance of leading PCB companies, focusing on their quarter-on-quarter revenue growth and capacity utilization data; 2) The next quarter capital expenditure guidance of cloud service providers (CSP) such as Microsoft and Google; 3) The release of new AI server platforms (such as NVIDIA's next-generation GPU) will directly drive high-end PCB demand.

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