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.
1217 ET - Nvidia's 2Q results are likely to beat Wall Street estimates, but that alone isn't expected to serve as a positive catalyst for the stock, JPMorgan analysts write in a note. Instead, they write, traders will be listening for a range of substantial updates: Nvidia's GPU shipments to China, the strategy behind the company's infrastructure funding agreements, the state of memory supply, and competitive pressures from other compute platforms. The threat of competition from AMD, Cerebras, and makers of custom chips "has been an ongoing narrative headwind for NVDA, and one that we think will be challenging to dispel entirely given the significant program ramps planned for the next few years," they write. (elias.schisgall@wsj.com)
1107 ET -- Descartes Systems' $100 million acquisition of Tai Software is highly complementary to its existing transportation management suite, says William Blair's Dylan Becker. The move strengthens the company's presence among North American freight brokers "while adding modern workflow automation and connectivity across multiple domestic transportation modes." Becker adds that Tai's less-than-truckload capabilities are a differentiated addition. The analyst adds that Tai's positioning among midsize and established freight brokers creates an "attractive cross-sell opportunity" for Descartes' existing customers, while Descartes' broader Global Logistics Network "should provide Tai with additional data, connectivity and distribution resources to support continued growth." Shares are up 1.3% at C$109.19. (adriano.marchese@wsj.com)
1024 ET - Heavyweight industrial and export-focused Canadian names are bearing the brunt of a sell-off as markets digest U.S. cross-border supply chain disruption. Among the biggest decliners are manufacturing and auto-parts stocks like Magna International, Linamar and also transformers and electrical equipment manufacturer Hammond Power Solutions, all of which face immediate headwinds under the non-CUSMA content penalties. Aerospace, materials and tech growth plays are also pulling back, including business-jet maker Bombardier, BlackBerry, specialty semiconductor producer 5N Plus and satellite maker MDA Space. Toronto indexes, however, remain flat as gains in mining, metals and financials offset the pressure. (adriano.marchese@wsj.com)
1006 ET - Thomson Reuters says it pursued a cost-efficient route to developing its first large language model, going the in-house route rather than with one of the biggest names in AI. Rather than spending billions on a massive general-purpose foundation model from scratch, the company fine-tuned an open source base model in-house. For the LLM, named "Thomson" and launched Monday, the company says it invested $40 million to "train Thomson into the right intelligence for the jobs that matter most." Thomson Reuters has long-asserted that its proprietary data repository gives it a distinct moat in the AI race, was its strength and differentiator in the age of AI models, noting that the model has been trained on less than 10% of its content library so far. (adriano.marchese@wsj.com)
0704 ET - The Swiss tech industry is experiencing a modest recovery, with an increase in sales and exports, but higher U.S. tariffs threaten to stifle the rebound, Swissmem says in a statement. Since the end of July, the U.S. has imposed a new tariff rate of 12.5% on goods from the Swiss tech industry, which is higher than the levies applied to products from the EU, the Swiss tech trade group says. "Should the tariff differential with the EU increase, the consequences would be severe," it says. "An agreement that does not put us at a disadvantage relative to our most important competitors remains essential," Chairman of Swissmem Martin Hirzel says. (andrea.figueras@wsj.com)
0605 ET - SoftBank Group and Alibaba shares are falling as investors balk at their plans to raise more cash to fund AI expansion, Swissquote's Ipek Ozkardeskaya says. Alibaba said it would raise $10.2 billion via a new share placement, while SoftBank plans to issue a record volume of retail bonds. The tech companies "are being punished today for seeking more financing," Ozkardeskaya says. The response from investors suggests that wider market sentiment around AI is fragile, the analyst adds. Alibaba's U.S.-listed depositary receipts fall 3.2% premarket, while SoftBank Group shares closed 5.3% lower in Tokyo. (josephmichael.stonor@wsj.com)
0424 ET - Gulf markets face pressure this week from potential tightening sanctions on Iran and elevated U.S. Treasury yields, Iridium Advisors says. The consultancy says details of what U.S. Treasury Secretary Scott Bessent has called the "toughest sanctions in history" could push negotiations with Iran further out of reach, while the U.A.E.'s halt to trade and financial transactions with Tehran may raise questions over corporate exposure to Iranian customers, suppliers and payments. Higher Treasury yields could also lift regional discount rates and borrowing costs, weighing particularly on real estate, utilities, infrastructure and telecom stocks. (farhan.rafid@wsj.com)
0400 ET - Asian tech stocks are being tested by corporate actions and supply concerns, Tickmill Group's Patrick Munnelly says in a note. With Alibaba planning to raise $10.2 billion for AI investment via a share placement and Chinese memory chipmaker YMTC seeking $4.9 billion in a Shanghai IPO, there are growing concerns about massive equity dilution and fresh share supply hitting the market, he notes. "While easing crude prices provide a temporary buffer, trade spats and incoming inflation data leave little room for complacency," he says. Meanwhile, investors trim risk exposure to highly sensitive growth stocks ahead of pivotal megacap earnings, including Nvidia's later this week, and the Federal Reserve's annual Jackson Hole gathering. (sherry.qin@wsj.com)
0340 ET - Samsung is expected to overtake Apple and reclaim the top spot in the global smartphone market in 2026, with shipments rising 0.8% while Apple's are projected to decline 2.1%, according to Counterpoint Research. The research firm forecasts global smartphone shipments will fall 14.3% amid rising component costs and weaker consumer purchasing power. Samsung's broad product portfolio and resilient supply chain are expected to support its performance, Counterpoint says. Chinese smartphone brands are projected to post shipment declines of 15% to 34%. Counterpoint expects market conditions to remain challenging in 2027 before a recovery begins in 2028. (jie.yang@wsj.com)
0118 ET - MPI stands to benefit from demand for custom artificial intelligence application-specific integrated circuit projects, Daiwa Capital Markets analysts say in a research report. Capitalizing on Taiwan's semiconductor manufacturing cluster, the Taiwanese company has maintained a high market share across such ASIC projects and is progressively becoming an exclusive supplier. Given more ASIC projects are being developed and moving into mass production, demand for probe cards is poised to grow. The brokerage initiates coverage of the stock with a buy rating and a target price of 8,415.00 New Taiwan dollars. Shares are 2.6% higher at NT$5,605.00. (ronnie.harui@wsj.com)
0048 ET - Kuaishou Technology's weak 2H guidance appears to be a sign of core business stress, China Galaxy International analysts say in a note. While the Chinese technology company's 2Q earnings were in line, the company expects softer 2H top-line growth and margins, the analysts note. Kuaishou faces headwinds including persistent macro softness in lower-tier cities driving a consumer shift toward budget essentials, tighter livestreaming regulations and high base effects. China Galaxy slashes its 2026-2028 earnings-per-share forecasts by 53%-63% to reflect continuing e-commerce and livestreaming headwinds. The brokerage cuts its target price to 43.72 Hong Kong dollars from HK$61.22 but retains an add rating on strong commercialization momentum for Kling AI, Kuaishou's generative artificial-intelligence video model. Shares decline 3.6% to HK$33.18. (megan.cheah@wsj.com)
2358 ET - TPG Telecom's bull at Macquarie see an increasing chance that the Australian mobile operator engages in capital management. With an unchanged outperform rating on the stock, an analyst at the investment bank calls clients' attention to TPG's surprise dividend hike and reiteration of its policy to sustainably grow its twice-yearly payout. Supporting this view, a note from the analyst points to limited capital expenditure commitments until spectrum payments in FY 2028, and its debt refinancing. TPG's free cash-flow profile and growth are improving, the analyst adds. Macquarie lifts its target price 2.5% to 4.10 Australian dollars. Shares are up 0.4% at A$3.825.
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