The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0941 GMT - Artificial-intelligence printed circuit boards are emerging as a key growth driver in the AI hardware stack, Daiwa analysts say in a research note. Driven by both volume expansion and higher average prices, the AI PCB total addressable market could reach $96 billion by 2030, they say. PCB manufacturers have entered "a capex supercycle," as China's top six PCB manufacturers have sped up their capex commitment from 2024 to 2026, led by Victory Giant Technology and WUS Printed Circuits, the analysts note. China accounts for about 54% of the global PCB market and Victory Giant alone had 14% of the global AI PCB market in 1H 2025, they say. Meanwhile, PCB manufacturers' accelerating capex will likely drive demand for drilling and exposure equipment, they add. (sherry.qin@wsj.com)
0940 GMT - Sterling's recent recovery against the U.S. dollar reflects hopes for a de-escalation of the Middle East conflict, Convera's Antonio Ruggiero says in a note. While the U.S. and Iran exchanged strikes Tuesday, investors appear to be focusing on the rhetoric of the U.S. framing the moves as limited and defensive, he says. "This has helped prevent a meaningful deterioration in risk sentiment." Meanwhile, President Trump said Tuesday the U.S. and Iran were close to reaching a deal. Sterling rises 0.1% to $1.3387. U.S. interest rate expectations will determine whether sterling rises above the 200-day moving average near $1.3420, with U.S. inflation data at 1230 GMT providing a key test, he says. (renae.dyer@wsj.com)
0925 GMT - European chip maker STMicroelectronics has several end-markets that could fuel growth in the coming years, Bank of America's Didier Scemama writes in a research note as he upgrades the stock to buy from neutral. "We think the market materially underestimates STM's earnings power over the course of the next 2-3 years," he says. The company will benefit through its optical interconnect business from growing investments to build out artificial-intelligence infrastructure, Scemama notes. The SpaceX supplier will also get a boost from low Earth-orbit satellites, where the investment cycle is just getting started, he adds. Meanwhile, the automotive and industrial end-markets are recovering and should also feed into sales for STMicroelectronics, Scemama says. STMicroelectronics shares trade 1.1% higher at 62.21 euros. (mauro.orru@wsj.com)
0913 GMT - WH Smith is likely to take a long time to recover from its current situation, Peel Hunt's Jonathan Pritchard and John Stevenson write in a note. The seller of stationery, books and magazines in airports and train stations cut its fiscal 2026 guidance for adjusted pretax profit, citing uncertainty from the Middle East conflict and pressures on gross margins, including the recent decline in the U.S. division's performance. "The U.S. venture is looking ill-starred," they say. However, the move to raise capital shows good judgment, as WH Smith is currently undergoing a restructuring and will need capital to do so properly, they say. Shares are down 18% at 4.03 pounds. (najat.kantouar@wsj.com)
0911 GMT - China's reported plan to invest 2 trillion yuan in data centers is likely to help private hyperscalers like Alibaba concentrate on servicing higher-margin enterprise clients, Citi analyst Alicia Yap says in a note. The government's plans, reported by Bloomberg, is facing investor concerns of pricing and future returns for hyperscalers, Citi notes, viewing them as premature. The reported support is seen to push forward AI adoption and benefit public enterprises and smaller businesses that may not be able to afford high token costs, she adds. Yap views the potential investment as increasing the mix of leased data-center capacity and relieving the expenditure on self-built facilities, allowing them to redirect resources toward overseas investment and research and development in chips and AI models. (jason.chau@wsj.com)
0905 GMT - Soitec's demanding valuation already reflects the opportunity from AI for the French semiconductor-materials maker, Berenberg's Trion Reid writes in a research note. Revenue from the edge and cloud AI business will exceed sales in the mobile communications segment by the fiscal year through March 2028, Reid notes. However, Soitec's stock jumped more than fivefold since the year began and has more than doubled over the past 12 months. "The photonics-related story is exciting, but we believe that this is more than reflected in the current price, with risks relating to the ongoing smartphone-related weakness and potential competition from GlobalWafers appearing to be largely overlooked." Soitec shares trade 13% lower at 122.50 euros. (mauro.orru@wsj.com)
0902 GMT - The pullback in Korea's benchmark Kospi, one of the clearest global expressions of the AI trade, suggests investors are reassessing how much future growth is already embedded in prices, says Patrick Munnelly at Tickmill Group. The Kospi ended down 4.5% as chip stocks gave back gains. Semiconductor and tech-related losses also pulled down Taiwan's Taiex and Japan's Nikkei, which finished 3.3% and 1.9% lower, respectively. That seems to reflect a shift in sentiment: Munnelly notes that earlier in the year, investors were willing to buy every dip in the chip complex, treating AI capex as a structural force strong enough to offset geopolitics, higher yields and valuation concerns. "That confidence has weakened." (fabiana.negrinochoa@wsj.com)
0843 GMT - Chinasoft International's 1 billion yuan in deals to supply high-end artificial-intelligence computing equipment signal significant early commercial validation of its new computing-power business strategy, say Citi Research's Kyna Wong and Yiming Li in a note. The Chinese software-outsourcing company laid out three monetization models across hardware resale, compute leasing and token sales in its strategy. The deals suggest early-mover commercial traction on the hardware-resale model, the analysts say. Citi retains its neutral rating and HK$3.50 target price. Shares closed 0.3% higher at HK$3.92. (megan.cheah@wsj.com)
0839 GMT - Soitec's stock has jumped far ahead of what can be considered fair value, Jefferies analysts write in a note to clients as they downgrade their recommendation on the company to underperform from hold. Shares in the French semiconductor-materials maker climbed more than fivefold since the year began and have more than doubled over the past 12 months. However, revenue is expected to grow less than expected in the coming years, analysts say. They estimate revenue growth of 6.5%, 16.5% and 20% in the fiscal years through March 2027, 2028 and 2029, against Visible Alpha consensus of 6.3%, 31.1% and 34.6%, respectively. Soitec shares trade 13% lower at 122.20 euros. (mauro.orru@wsj.com)
0839 GMT - WH Smith's apparent strengths have been swept away as the company's situation is only getting worse, Interactive Investor's Richard Hunter writes in a note. The seller of stationery, books and magazines in airports and train stations has issued a profit warning and plans to raise capital, involving up to around 26 million new common shares of the company. "The capital raise comes at a time which will severely test investors' patience and loyalty to the cause," he says. Further investment in WH Smith will need a leap of faith, as declining consumer confidence has weighed on per-passenger spending, the reduction in the number of flights to the U.S. has affected airline capacity, and the conflict in the Middle East has slowed the group's overall progress, he adds. Shares are down 18% at 4.03 pounds. (najat.kantouar@wsj.com)
0818 GMT - SK Hynix's planned U.S. listing--possibly as early as August--through the issuance of American depositary receipts could narrow its valuation gap with rival Micron Technology, Meritz Securities' Kim Sun-woo says. The ADR listing could also pave the way for the South Korean memory-chip maker's inclusion in the Philadelphia Semiconductor Index, a U.S. chip benchmark tracked by global passive funds, potentially prompting a re-rating of the stock. Meritz expects SK Hynix to continue delivering strong earnings on robust chip demand and tight supply despite output increases, projecting operating profit of 66 trillion won in 2Q and 270 trillion won in 2026.(kwanwoo.jun@wsj.com)
0813 GMT - Gold slides 2% as fresh U.S.-Iran strikes raise fears that a prolonged conflict and higher oil prices could fuel inflation and prompt interest-rate hikes by the Federal Reserve. The U.S. launched military strikes Tuesday against Iran in response to the downing of a U.S. Apache helicopter near the Strait of Hormuz, while Iran's Islamic Revolutionary Guard Corps launched a drone attack on the U.S. Fifth Fleet in Bahrain. The latest escalation has increased uncertainty over prospects for a peace agreement and gradual reopening of the Strait, a critical artery for global energy shipments. "The precious metal is now roughly 20% below its pre-conflict level, with additional selling pressure emerging after prices fell below key technical support levels closely watched by investors," analysts at MUFG say. In early trading, New York gold futures are down 2.3% to $4,185.70 a troy ounce. (giulia.petroni@wsj.com)
(END) Dow Jones Newswires
June 10, 2026 05:41 ET (09:41 GMT)
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