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.
0753 GMT - ASML Holding's sales and margin forecasts for the current quarter are above expectations, Jefferies analysts write in a note to clients. The Dutch supplier of semiconductor-making equipment is projecting sales between 11 billion and 12 billion euros in the third quarter. Analysts point out that range is above their estimate of 10.34 billion euros. ASML's gross margin--a closely watched metric of pricing power and profitability--should come in between 55% and 57%. Jefferies analysts had forecast a 52.2% margin. ASML shares trade 5.8% higher at 1,646.40 euros. (mauro.orru@wsj.com)
0750 GMT - Ericsson faces surging component prices and the market isn't convinced that the company can offset costs through contract renegotiation and efficiency measures, J.P. Morgan says. While Ericsson's weaker gross margin guidance for networks in the third quarter is a function of new project rollout costs, the company has flagged input costs as gradually more negative in the second half and 2027. The company is working to mitigate costs through product substitution, supply chain actions and customer contract renegotiations. On the positive side, group operating expenditure this year is estimated at 78 billion Swedish kronor ($8.06 billion), from 81.5 billion kronor in 2025, and a new licensing deal should also be accretive to margins. The bank rates Ericsson at neutral with a 102 kronor price target. Shares fall 0.4% to 98.12 kronor. (dominic.chopping@wsj.com)
0738 GMT - SK Hynix ADRs' premium shows global investor demand for AI hardware exposure, Tickmill Group's Patrick Munnelly says in a note. SK Hynix's ADRs now trade at a premium of more than 50% to the Seoul line, not only driven by enthusiasm, but also scarcity pricing for the AI hardware trade, the analyst says. The Kospi's recovery this session, led by chip makers, shows that the AI bid is alive, but it is recovering from a heavy drawdown and still depends on a friendlier rates backdrop, the analyst notes. Still, even after the 6.2% rally on Wednesday, the benchmark index is down 20% from its June peak. SK Hynix's Seoul-listed shares ended 8.8% higher.(sherry.qin@wsj.com)
0646 GMT - ASML Holding's plans to boost production of its machines show that earnings potential for 2028 is dramatically above consensus, J.P.Morgan analysts write in a research note. The Dutch supplier of semiconductor-making equipment is considering a roughly 30% boost to output for 2027 and another 30% increase for 2028. Analysts note the 2028 capacity guidance is higher than even the highest expectations and that this would result in more than 65 euros in earnings per share that year. They say ASML's 2Q results and 3Q guidance were also better than expected and that 2026 consensus estimates are likely to rise by around 25% after ASML upgraded its guidance. (mauro.orru@wsj.com)
0622 GMT - ASML Holding's plans to boost output of its extreme ultraviolet lithography systems are below expectations for next year, Citi analysts write in a research note. The Dutch supplier of semiconductor-making equipment is considering a roughly 30% boost to EUV output for 2027 and another 30% increase for 2028. Analysts say the 2027 boost would amount to about 85 machines compared with forecasts of about 90 to 100. However, the 2028 increase would equate to 110 EUV machines, which they say is slightly ahead of expectations of 100 to 110. "The big picture, in our view, is that demand is so strong that ASML are willing to provide the market with clear bottoms up guidance two years out, something that we think should be viewed positively," the analysts say. (mauro.orru@wsj.com)
0620 GMT - ASML Holding delivered an unexpectedly large boost to its annual guidance, Citi analysts write in a note to clients. The Dutch supplier of semiconductor-making equipment expects sales between 43 billion and 45 billion euros this year compared with prior guidance of 36 billion to 40 billion euros. ASML's gross margin--a closely watched metric of pricing power and profitability--is expected between 54% and 56% compared with 51% to 53% previously. Analysts say demand for machines to make memory chips is driving the bulk of the 2026 revenue upgrade. (mauro.orru@wsj.com)
0459 GMT - Australian businesses welcome the government's move to announce standards for the artificial intelligence industry that includes significant obligations for data centers and protections of intellectual capital. Bran Black, chief executive of the Business Council of Australia says it was pleasing that the government is prioritizing the development of AI policy, while establishing an AI Office in Canberra. He estimated AI could be worth $100 billion Australian dollars to the economy over coming years. (james.glynn@wsj.com; @JamesGlynnWSJ)
0145 GMT - Brother Industries stands to benefit from data-center-related demand, say SMBC Nikko Securities analysts in a research report. Its machinery segment is likely seeing higher demand for machine tools for data centers, says the brokerage, which forecasts the segment's business profit growth at 82% for this fiscal year. Also, the Japanese electronics and electrical equipment company's market share for inkjet and laser printers is rising, the analysts note. The brokerage initiates coverage of the stock with an outperform rating and a target price of 5,400 yen. Shares are 2.3% higher at Y3,822. (ronnie.harui@wsj.com)
2357 GMT - For Aussie Broadband, the slowdown in residential subscriber growth has played out and is more than priced into its stock, says Jarden. It upgrades Aussie Broadband to overweight from neutral, while keeping its price target unchanged at 5.50 Australian dollars a share. "Into FY27/FY28, the market appears to be underestimating the cost opportunity as replatforming converts scale into operating leverage," says analyst Liam Robertson. Aussie Broadband's costs should grow less quickly than inflation. That allows the company to grow earnings ahead of market expectations despite the residential slowdown, before any boost from acquisitions, Jarden says. Aussie Broadband ended Tuesday at A$4.70. (david.winning@wsj.com; @dwinningWSJ)
1719 GMT - Delivery Hero says it is in advanced discussions with Uber over a potential takeover of the German food-delivery company. The talks come amid recent efforts from Uber to bolster its international presence. Earlier this year, Uber agreed to acquire chauffeur-service company Blacklane, which operates in more than 60 countries, and in June, the ride-hailing company agreed to acquire Getir's delivery portfolio in Turkey. Delivery Hero operates in about 65 countries across Asia, Europe, Latin America, the Middle East and Africa, according to the company's website. (kelly.cloonan@wsj.com)
1649 GMT - The market has soured on Netflix in the last few months, bringing several concerns to the forefront ahead of the streaming company's 2Q results, Morgan Stanley analysts say in a note. Investors are worried about engagement trends and a lack of recent break-through new content, as well as the possibility of higher churn after a price hike in March. There are also concerns over higher spending and less margin expansion than Netflix's historical average, plus questions over its positioning amid the rise of AI and uncertainty over which type of content will resonate with audiences in the future, they say. However, they continue to see shares as undervalued. "We tend to think many of these concerns are well understood and in some cases overblown," they say. (kelly.cloonan@wsj.com)
1630 GMT - Apple's stock looks overly expensive as several factors threaten to pressure unit growth, KeyBanc Capital Markets analysts say in a note. The device maker's recent price increases for iPad and Mac, and a potential hike for iPhone prices, will likely drive a slowdown in unit growth, the analysts say. That will in turn weigh on user growth which is correlated with its services business, the analysts say. Additionally, U.S. carriers like Verizon and AT&T seem to be pulling back on device subsidy offers, which could encourage consumers to hold onto their devices for longer and upgrade less frequently, pressuring domestic growth, they say. That makes international growth increasingly important for Apple, where iPhone price increase will make it tough to gain customers, they say. The analysts downgrade the stock to underweight from sector weight, with a $250 price target. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
July 15, 2026 04:20 ET (08:20 GMT)
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