Tech, Media & Telecom Roundup: Market Talk

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.

0818 GMT - SAP shares are gaining ground on Monday, extending a rally from last week after the German business-software group surprised investors with strong revenue figures that showed the resilience of its cloud business. The group's current cloud backlog--a closely watched measure of sales that SAP expects over the coming year based on existing contracts--grew 26% at constant currencies in the second quarter, above expectations of around 24%. Shares in Frankfurt closed 9.3% higher on Friday and are up 5.4% at 147.74 euros on Monday. (mauro.orru@wsj.com)

0801 GMT - CXMT's spectacular debut shows that the strategic bid for chip exposure remains powerful, Tickmill Group's Patrick Munnelly says in a research note. CXMT's shares soared 466% in its Shanghai trading debut, making it the most valuable listed company in mainland China. The robust performance shows how aggressively domestic investors are chasing national semiconductor champions tied to the artificial-intelligence theme, Munnelly says, even as global investors continue to question whether AI capex could justify valuations. While this robust performance doesn't relieve concerns about AI spending, it shows that investors still want chip exposure, especially when national policy and the AI infrastructure build-out align, he adds. (sherry.qin@wsj.com)

0752 GMT - Chinese memory maker CXMT could capture an 18% global DRAM market share by the end of 2028, say Nomura analysts. The company currently holds around a 10% market share, they say in a note. Its major U.S. competitor, Micron, currently holds a market share of over 20%, but CXMT is expected to approach Micron's levels over time, they add. The overall global memory usage is expected to increase more than seven-fold between 2026 and 2030, driven by the evolution of artificial intelligence, they say. CXMT's stock surged 466% to 49 yuan on its market debut Monday. Nomura initiates coverage on the stock with a buy rating and a CNY116 target price. (jie.yang@wsj.com)

0734 GMT - SK Hynix is likely to post record 2Q earnings, driven by one-off investment gains and higher semiconductor prices, Meritz Securities' Kim Sun-woo says. The analyst estimates the South Korean memory-chip maker's April-June pretax profit at more than 100 trillion won--comprising 60.1 trillion won in operating profit and 41.6 trillion won in gains from its stake in Japanese chip maker Kioxia through U.S. private equity firm Bain Capital. That would surpass the company's record operating profit of 58.8 trillion won in 1Q. Bain sold part of its Kioxia stake recently, Kim notes. He adds DRAM and NAND memory chip prices rose 30% and 49%, respectively, in 2Q. (kwanwoo.jun@wsj.com)

0430 GMT - CXMT likely faces growing challenges in closing its technology gap with global memory leaders, says Jing Jie Yu of Morningstar in a research note. CXMT's inability to access EUV lithography technology is becoming a significant technological barrier, as the hardware limitations will make continued node advancement increasingly costly and complex, the analyst notes. CXMT could find workarounds, such as innovations in back-end packaging, to prevent the technological gap from expanding. However, these methods could further weigh on final yields and keep profitability below its peers, he adds. CXMT's shares are up 531% on their trading debut, at 54.65 yuan. (sherry.qin@wsj.com)

0406 GMT - CXMT could be a key beneficiary of China's continued support for chip self-sufficiency, Morningstar analyst Jing Jie Yu says in a note. While CXMT's technologies still lag global memory leaders, the analyst expects robust domestic adoption of its chips. However, it doesn't mean that global memory players will be shut out from fulfilling China's memory needs, he notes. CXMT's 2026 wafer capacity should be roughly one-sixth of the projected 2026 capacity of the three memory leaders combined, he says. Domestic Internet companies could be required to purchase a certain allocation of CXMT's DRAM chips but are not denied access from leading global memory chips that can be accessed under existing trade conditions, he adds. CXMT's shares are up 531% on its trading debut at 54.65 yuan. (sherry.qin@wsj.com)

0341 GMT - StarHub gains a new bull in DBS Group Research's Sachin Mittal on the potential for the Singapore telecommunications company to acquire rival M1. StarHub and M1 could announce a deal in 2026, the analyst says in a note, after the M1-Simba deal collapsed. The analyst estimates annual synergies between StarHub and M1 to be about 9%-11% of the combined FY 2026 Ebitda. Any consolidation of the Singapore telecommunications sector could also boost StarHub's annual revenue per user, he says. DBS raises its rating on StarHub to buy from fully valued and increases its target price to 1.40 Singapore dollars from S$0.94. Shares are flat at S$1.02. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 04:20 ET (08:20 GMT)

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