JPMorgan Bullish On Apple, Amazon, Meta, Tesla's In-House Chip Production

JPMorgan recommended investors to pursue longer-term trends in the semiconductor space like high-end computing globally and less-advanced technologies in China, CNBC reports. The fragmented ongoing disruption in high-end global computing could lead to 15% - 20% growth in three to five years.

• For instance, Apple Inc AAPL, Amazon.com Inc AMZN, Meta Platforms Inc FB (formerly Facebook), Tesla Inc TSLA, and Baidu Inc BIDU shunned established chipmakers for in-house chip development.
• JPMorgan is also positive on Chinese semiconductor companies that focus on legacy, longtail technologies attracting multiple companies.
• Most of these companies only have 5% - 10% of the local demand. 
• JPMorgan sees the potential addressable market growing to 5 - 10 [times] of what they were currently serving.
• "We are not expecting 2023 to be in supply shortage — so, that is probably the first thing that we can say."
• But 2022 "is a little bit more tricky."
• JPMorgan sees some improvement from the second half of the year as more supplies come online, but the first six months could still see pockets of shortage across the industry.
• JPMorgan sees a relatively short downturn in the memory cycle as industry dynamics have improved compared with past downcycles that lasted longer.
• Price Action: AAPL shares traded lower by 0.45% at $157.19 in the premarket session on the last check Friday.