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 - Shares of European semiconductor companies edge higher after Nvidia reported a blowout quarter and issued strong revenue guidance for fiscal 2028. Finance chief Colette Kress said the group expects 70% revenue growth in fiscal 2028, significantly better than the 45% growth that analysts polled by FactSet had predicted. Chip stocks benefit from the announcement. Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are up 1.7% and 2.6%, respectively. BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, is up 1.6%. German chip maker Infineon Technologies is up 2.3%. STMicroelectronics shares are up 3.9%. Meanwhile, the E-mini Nasdaq 100 futures contract is up 0.8%, pointing to a positive opening for tech stocks in the U.S. (mauro.orru@wsj.com)
0759 GMT - Nvidia's commitments to finance some companies in the AI ecosystem complicates the firm's risk profile, Saxo's Charu Chanana says in a note. While the funding programs can help Nvidia "secure scarce supply, accelerate customer deployments and expand its addressable market," they also complicate the tech company's risk profile, she says. "Investors increasingly need to consider customer credit quality, leases, guarantees, revenue-sharing agreements and Nvidia's equity investments--not just GPU shipments," Chanana says. (miriam.mukuru@wsj.com)
0703 GMT - China's semiconductor self-sufficiency drive is expected to gain momentum as AI demand fuels investment in advanced chips, memory and manufacturing capacity, Goldman Sachs says in a report. GS forecasts China's semiconductor capital spending to reach $82 billion by 2030, up 79% from previous estimates, as companies expand advanced-node and memory production. It projects China's 7nm-and-below chip supply gap to narrow to 34% by 2035 from 92% in 2025. In memory, CXMT is expected to supply 50% of China's DRAM demand by 2028, supported by capacity expansion and improving yields. China's DRAM market is forecast to grow at a 50% annual rate through 2028, driven by AI servers and high-bandwidth memory demand, it says. (jie.yang@wsj.com)
0639 GMT - South Korean entertainment companies' stock risk-reward profiles are becoming more favorable to HSBC Global Investment Research's Junhyun Kim as earnings could improve next year. The stocks of the three major Korean pop companies--HYBE, SM Entertainment and JYP Entertainment--declined over 40% year to date on slower earnings growth and the lack of visible catalysts after boy band BTS's March comeback, leading to contraction in the stocks' valuations, the analyst says in a note. However, he expects the three companies' 2027 EPS to grow an average of 19% compared with a single digit percentage growth estimate in 2026, amid improved monetization from rookie band intellectual properties. HSBC maintains its buy ratings on the three companies with HYBE as its top sector pick. (megan.cheah@wsj.com)
0452 GMT - WiseTech Global loses its bull at Jefferies on limited visibility over how the logistics-software provider plans to deliver the accelerated revenue growth it needs to hit fiscal 2027 guidance. Lowering his recommendation to hold from buy, analyst Roger Samuel tells clients in a note that performance of WiseTech's CargoWise platform across the six months through June suggests that it needs a significant uplift in the second half of the current fiscal year to deliver on guidance for 12%-20% annual growth. "WiseTech may do well at cost-cutting, but it eventually needs to demonstrate strong top-line growth for the stock to re-rate," he writes. Jefferies cuts its target price 25% to 45.00 Australian dollars. Shares are down 3.1% at A$39.64. (stuart.condie@wsj.com)
0446 GMT - WiseTech Global's bull at Macquarie thinks the logistics-software provider is extremely focused on achieving its fiscal 2027 earnings guidance. A note from the investment bank's analysts says the Australian company's underlying Ebitda guidance pointedly excludes cost savings from its planned exit from professional services, with management uncertain over the timing and quantum of the reductions. The analyst also reckons that Ebitda margin guidance is conservative. The stock's valuation at 22 times fiscal 2028 earnings is undemanding, but catalysts are needed for an improvement, they add. Macquarie keeps an outperform rating on the stock and raises its target price 2.3% to 48.20 Australian dollars. Shares are down 3.0% at A$39.68. (stuart.condie@wsj.com)
0436 GMT - WiseTech Global's bulls at UBS lower their earnings forecasts for the logistics-software provider on moderated revenue expectations. Analysts Lucy Huang and Alisa Lei maintain a buy rating on the stock, but trim their revenue outlook after WiseTech decided against raising prices of its CargoWise product on July 1. They continue to see WiseTech enjoying a strong defensive moat against the threat of artificial-intelligence-powered disruption, and like its cost discipline, but now expect fiscal 2027 revenue at the lower end of company guidance. They tell clients in a note that they are giving WiseTech little benefit on midterm growth drivers. UBS cuts its target price 14% to 56.00 Australian dollars. Shares are down 2.7% at A$39.77. (stuart.condie@wsj.com)
0406 GMT - AI infrastructure is likely to expand across multiple sites as power and land shortages increasingly constrain data center growth, a Digitimes Intelligence report says. Big technology companies are beginning to connect GPU clusters across nearby campuses with high-speed optical networks, allowing them to function as a single AI system, the report says. Digitimes calls the approach "Scale-Across," which could help cloud-service providers keep adding computing capacity even when power, cooling or land at a single site becomes limited. The shift is expected to boost demand for advanced optical networking, creating opportunities for suppliers like Ciena, Nokia, Cisco and Marvell, the report says.(jie.yang@wsj.com)
0252 GMT - Nvidia's results are a strong validation of the artificial-intelligence infrastructure trade, Saxo Markets chief investment strategist Charu Chanana says in a note. Memory, networking, optics, power infrastructure and selected cloud providers all benefit from continued capacity expansion, but there is increasing need to prove AI returns, Chanana notes. Memory remains one of the clearest beneficiaries, with Nvidia's margin guidance confirming that supply is still tight, she says. Asian memory stocks are broadly higher after the results, with SK Hynix gaining 3.4% and Samsung Electronics rising 2.3%. Still, the next leg of the memory trade increasingly depends on whether AI demand and memory content per accelerator can absorb the rising supply capacity rather than simply on shortages pushing prices higher, she adds. (sherry.qin@wsj.com)
0243 GMT - Singapore's electronics industry will still benefit from the global artificial intelligence infrastructure buildout despite electronics growth cooling to a 11-month low, Maybank economists write in a report. Electronics growth cooled to 11.2% on year in July, down from 21.1% in June, partly on a high base. "Despite cooling electronics output growth, we think it is unlikely that the AI boom is coming to an imminent end," Maybank says. Demand for Singapore's semiconductor equipment also remains robust amid a global expansion in chip fabrication capacity. Singapore accounts for a sizeable market share of about 20% of global semiconductor equipment production, Maybank notes.(amanda.lee@wsj.com)
0238 GMT - Apple's strong iPhone 17 lineup is expected to help it maintain momentum in key markets as consumers continue gravitating toward premium smartphones, according to Counterpoint Research. The research firm says the iPhone 17 was the world's best-selling smartphone in 2Q, capturing 6% of global sales, while the iPhone 17 Pro Max and iPhone 17 Pro ranked second and third, respectively. Apple's smartphone sales rose 5% on year despite an 11% decline in the overall market, supported by growth in India, Japan, the Middle East and Africa. Counterpoint says the global top 10 smartphone models accounted for 26% of worldwide sales, as brands focused on flagship and core devices amid memory shortages. (jie.yang@wsj.com)
0209 GMT - Chinese DRAM maker CXMT is expected to sustain rapid growth over the next several years, as strong artificial-intelligence-related demand keeps the global memory market tight, according to a Morgan Stanley report. The brokerage initiates coverage of CXMT with an overweight rating, forecasting revenue to grow at a 140% compound annual rate between 2025 and 2028, driven by capacity expansion, rising adoption of its memory chips and firm pricing. Morgan Stanley estimates CXMT's share of global DRAM bit shipments will rise to 15% by 2030 from 11% in 2026, while global DRAM supply is expected to remain constrained through 2027 despite industry expansion plans. The report says demand from China's AI infrastructure build-out should continue to support the company's growth.
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