The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0811 GMT - STMicroelectronics' decision to lift its data-center revenue target reflects confidence it can expand capacity to meet high demand for artificial intelligence, Jefferies analysts write in a note to clients. The European chip maker expects data-center revenue of about $1 billion this year compared with a prior forecast of more than $500 million. It also said data-center revenue could double in 2027 if demand stays strong compared with previous guidance of well above $1 billion. STMicroelectronics shares trade 0.3% lower at 68.11 euros. (mauro.orru@wsj.com)
0705 GMT - Bitcoin stays weaker after reaching a two-month low during Asian trade after the U.S. and Iran exchanged heavy fire in the Persian Gulf. Bitcoin has come under pressure this week as U.S.-Iran diplomatic efforts stall and after Strategy said Monday it sold bitcoin for the first time since 2022. Bitcoin has broken below the exponential moving average-200 line around $68,930, ING technical analyst Roelof-Jan van den Akker says in a note. "A weekly close beneath this level, as well as the horizontal support near $65,670, would be technically weak and suggest a move towards the key support zone around $54,450 in the weekly chart." Bitcoin falls 0.2% to $67,356 after falling to a low of $65,394 earlier, LSEG data show. (renae.dyer@wsj.com)
0640 GMT - Poor profitability for Chinese companies could be a growing headwind for stocks, says Capital Economics' Thomas Mathews in a note. Year-on-year growth in the earnings per share of companies on the MSCI China index has dropped to around zero based on certain measures, likely due to a worsening picture in the tech-heavy consumer discretionary and communication services sectors, says the Asia-Pacific head of markets. He attributes this to ramped-up price wars and sluggish domestic demand, but notes authorities are taking steps to address the former. Despite these headwinds, he expects Chinese equities to still fare well for the rest of the year as the market remains a key beneficiary of the AI boom. (megan.cheah@wsj.com)
0519 GMT - Kioxia Holdings' earnings volatility is expected to ease on likely higher revenue and margin, Daiwa Capital Markets' SK Kim says in a research report, citing the company's investor day. The computer memory manufacturer expects to enter a super-cycle based on AI-infrastructure-led demand and long-term agreements, the analyst notes. The Japanese company plans to accelerate migration of its 'BiCS 8' and BiCS 10' flash memory products, maintaining technology leadership. Also, management expects tight 'NAND' supply until end-2027, led by inference AI. Daiwa lifts its FY 2026-2027 EPS estimates for Kioxia by 32%-35%. It raises the stock's target price to 123,000 yen from Y50,000, with an unchanged buy rating. Shares are 2.4% higher at Y79,400. (ronnie.harui@wsj.com)
0447 GMT - Physical AI is rapidly maturing and will soon be deployed to lower costs and improve operational efficiency across factory floors, says Macquarie analysts in a note. The AI industry is shifting from generic to physical, and being used to accelerate training and testing of physical AI models through advanced data and testing simulations, they say. To support this transition, major chipmakers are establishing robust ecosystems by releasing reference robot designs that allow developers to prototype using proprietary silicon, such as Nvidia's GR00T and Qualcomm's IQ10, which help shorten the prototype development time from months to days, they say. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0428 GMT - Chinese memory-chip maker YMTC stands to gain from the AI infrastructure buildout, research firm Counterpoint says. The AI boom is driving record demand for the Nand flash memory YMTC specializes in, pushing the market's size up 3.5X on the year to $46 billion in 1Q. During that quarter, YMTC's revenue surged 445% on year as it cashed in on strong domestic demand and supply shortages, putting its share of the global market at 13%, Counterpoint says in a report. Researcher MS Hwang thinks that the capital injection will give YMTC the firepower it needs to pull ahead of rivals Kioxia and Micron, and establish itself as the world's third-largest Nand vendor. YMTC is currently planning an IPO in China. (jie.yang@wsj.com)
0420 GMT - Nine Entertainment's bull at Macquarie reckons the Australian media group is well positioned following the divestment of its regional TV assets. A note from one of the investment bank's analysts contends that the local advertising market may be approaching a cyclical low point, with interest rates expected to peak later this year and business confidence improving. "Assuming inflation does not materially worsen versus expectations, we are optimistic on an improving ad market in FY27," the analyst writes. They anticipate incremental high-margin revenues on the expectation that the government makes digital platforms pay for content. Macquarie cuts its target price by 8.7% to A$1.05 and keeps an outperform rating on the stock, which is down 1.1% at A$0.925. (stuart.condie@wsj.com)
0351 GMT - Meituan's core local commerce segment could stage an earnings turnaround in 2Q, spurred by reduced losses in the food-delivery business, DBS Group Research analysts say in a note. "The subsidy-driven competitive pressure is easing materially," as indicated by the sharp sequential narrowing in the segment's 1Q operating loss, they write. The Chinese shopping-and-delivery platform also stands to gain from improved margins as key competitors reduce subsidies and redirect resources away from food delivery. DBS raises its 2026 and 2027 earnings forecasts for the company by 4% and 6%, respectively, and lifts the target price to HK$125 from HK$119, with a buy rating. Shares fall 6.1% to HK$80.30 after Tuesday's 9.3% advance following better-than-expected results. (farah.elias@wsj.com)
0346 GMT - TPG Telecom's trading update leaves UBS analysts feeling a little more wary about the outlook for Australia's mobile operators. They point out in a note to clients that growth is largely coming from more value-focused offerings such as digital-only brands, as well as enterprise. With spectrum renewal costs looming, analysts Lucy Huang and Ailsa Lei wonder how successful operators will be at passing on costs to customers through price increases. The pair say that TPG is trading at an 18% discount to larger rival Telstra, but reckon that is justified by factors including its more price-sensitive customer base. UBS lifts its target price by 0.5% to A$3.97 and stays neutral on the stock, which is up 0.4% at A$3.715. (stuart.condie@wsj.com)
0307 GMT - Megaport's bull at Citi wonders whether the Australian connectivity and computing provider should focus more on its on-demand GPU pool than on large new contracts. Analyst Siraj Ahmed likes Megaport's move to create an on-demand GPU pool and thinks the floated payback period of between 16 and 22 months is conservative. Using the company's pricing, he thinks a period of 12 months is possible. Ahmed observes the large contracts create an annual recurring revenue headwind when they finish, and tells clients in a note that he sees the on-demand GPU pool return metrics as more attractive. Citi has a last-published buy rating and a A$15.65 target price on the stock, which is in a halt at A$16.61. (stuart.condie@wsj.com)
Australian stocks are poised to open higher after modest gains on Wall Street. ASX futures are up by 0.4% ahead of Wednesday's session, suggesting that the S&P/ASX 200 could reverse losses from the past two days. Before the bell, Megaport announced A$458.9 million in new AI infrastructure contracts and an entitlement offer to raise A$827.3 million. Northern Star, in which activist Elliott has announced a large stake, released a much-anticipated resources and reserves update that for the first time included estimates for its prized Hemi project. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1648 GMT - HPE management doesn't seem to know exactly how durable server demand will be over the long-term, Morgan Stanley analysts write in a note, pointing out that the company didn't update its fiscal 2028 outlook despite a strong showing in the second quarter. "Our takeaway is that HPE has sufficient visibility to underwrite very solid FY27 Cloud and AI growth, but determining the duration of this demand when so many factors are converging at the same time is challenging," the analysts write. "The debate going forward is whether what we are seeing represents a true multi-year secular expansion or an unusually strong phase of the enterprise spending cycle." They lift their price target to $71 from $33. Shares are up 16%. (elias.schisgall@wsj.com)
(END) Dow Jones Newswires
June 03, 2026 04:20 ET (08:20 GMT)
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