J.P. Morgan Asian Tech: 2026 Computex Takeaways Part 2
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J.P. Morgan released the second installment of its 2026 Computex takeaways, focusing heavily on evolving AI infrastructure and edge AI advancements. The firm notes a rapid escalation in AI server rack power densities, increasing from the current 30-40 kW range toward 100 kW and beyond. This shift is accelerating the widespread adoption of liquid cooling solutions, with market penetration projected to hit 30% in 2026. Simultaneously, power architectures are transitioning from 12V to 48V systems to minimize transmission losses.
Networking capabilities are also rapidly advancing. Switch chip bandwidths are doubling from 51.2T to 102.4T, driving immediate demand for 800G optical modules, with an industry-wide upgrade to 1.6T anticipated by 2027. Within this optical supply chain, LandMark is well-positioned to capitalize on surging EML laser demand, while Browave benefits from WDM component proliferation. Furthermore, edge AI devices, encompassing both AI PCs and smartphones, remain in early adoption phases but are poised for accelerated market penetration during the second half of 2026.
Data center capital spending is forecast to expand by 20% to 30% throughout 2026, spearheaded by leading hyperscale cloud providers. J.P. Morgan identifies Delta Electronics (2308.TW), Lite-On Technology (2301.TW), Accton (2345.TW), LandMark, and Browave as the primary supply chain beneficiaries of these structural upgrades.
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