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.
1052 ET - Privacy coin Zcash set a new all-time high over the long weekend, climbing to $1,246 Sunday. The crypto token has since pared those gains, and is now trading around $1,165. Enthusiasm around Zcash is centered on its "zero-knowledge cryptography," which hides both transacting addresses and the amount being transferred, and could serve to mitigate the power of AI to de-anonymize user addresses on older blockchains like bitcoin. "We expect AI to create new threats to financial privacy, and to motivate a search for new solutions," says Zach Pandl of Grayscale in a recent note. Major cryptocurrencies are mixed, with bitcoin down 1.2% to $78,313, ethereum off 0.7% to $2,477, XRP up 0.6% to $1.41, and solana down 1.1% to $102.96. (kirk.maltais@wsj.com)
1004 ET - Risk appetite across markets is being tested as Houthi attacks in Saudi Arabia boost crude oil prices and challenge hopes that the conflict can end soon. Instead, the continued fighting and the implementation of new tariffs on U.S. goods by Canada has investors paring back exposure to risk and volatility in assets like bitcoin. How long the risk-paring trade dominates may be linked to expectations around a potential rate hike next week from the Federal Reserve. Bitcoin falls 1.1% to $78,337, ethereum slides 1% to $2,472, and XRP is slightly up 0.1% to $1.40. (kirk.maltais@wsj.com)
0628 ET - ASML Holding's advanced chip-making equipment is gaining momentum after Taiwan Semiconductor Manufacturing Co. and Samsung Electronics said they planned to adopt its high numerical aperture technology at scale in the coming years, Bank of America's Didier Scemama writes in a research note. "Collectively, the announcements indicate that the technology is progressing from development into broader manufacturing adoption across logic and memory," Scemama notes. Meanwhile, another announcement that ASML is working with TSMC to transition to a larger-format photomask, a high-precision master template or stencil that contains the pattern for an integrated circuit, is also positive as it should improve productivity, reduce chip-making costs and remove stitching constraints, the analyst says. ASML shares trade 1.5% higher at 1,523.00 euros. (mauro.orru@wsj.com)
0609 ET - Bloomsbury Publishing's succession plan shouldn't come as a surprise, Peel Hunt's Jessica Pok and Melanie Yang write in a note. The London-listed publishing company outlined a five-year leadership succession as founder and CEO Nigel Newton becomes executive chairman. "Investor concerns have centered on leadership succession and Nigel Newton's future role," they note. However, the succession plan provides greater transparency when it comes to leadership continuity, they say. Shares are down 3% at 6.09 pounds. ( najat.kantouar@wsj.com)
0534 ET - ASML Holding's share price already reflects a sizeable chunk of risks that could arise for the Dutch semiconductor-equipment maker should there be more export restrictions to China, UBS analysts write in a research note. "While AI demand and macro risks remain important topics, we believe attention is increasingly centred on the forthcoming Trump-Xi meeting," analysts say. They point out the summit could act as a near-term clearing event for the stock. China is expected to account for roughly 17% of ASML's revenue in 2027 and about 15% in 2028, analysts estimate. ASML shares trade 0.7% higher at 1,510.40 euros. (mauro.orru@wsj.com)
0506 ET - ASML Holding is poised to benefit from Taiwan Semiconductor Manufacturing Co.'s plans to use its high numerical aperture technology to make advanced semiconductors toward the end of the decade, UBS analysts write in a note to clients. "This provides important validation of the commercialization timeline and supports potential high NA revenue contributions for ASML beginning in 2029-30," analysts say. The Dutch semiconductor-equipment maker is working with TSMC to transition to a larger-format photomask, a high-precision master template or stencil that contains the circuit pattern for an integrated circuit. The companies expect the shift to 12-inch masks from 6-inch masks to increase productivity and lower chip-making costs. ASML shares trade 0.1% higher at 1,501.60 euros. (mauro.orru@wsj.com)
0440 ET - Sentiment towards Chinese AI stocks may take time to recover, but long-term investors could consider rebuilding their exposure given a strong earnings outlook, Julius Baer analyst Richard Tang writes in a note. China's 2Q earnings per share grew 24% on year while 1H grew 14% on year, in which the profit growth of onshore companies was notably higher than offshore, Tang adds. The earnings results underpins the bank's constructive view on Chinese equities. The global environment of higher rates is likely to support value stocks more than growth stocks, Tang says. This sentiment may spill over to China, particularly offshore stocks, even though Chinese rates are following a different path from those in most other major markets, Tang adds. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0440 ET - Auto Trader is seen as a sector leader of the agentic artificial intelligence future, Jefferies analystsGiles Thorne and Weng Lum Khoo say. The digital-automotive marketplace's massive trove of proprietary data is a key shield against the rise of general AI. The online car marketplace relies on its AI-powered "Co-Driver" system to deliver deep, real-time market insights, Jefferies says. "The conditions are there to accelerate product ARPR [average revenue per retailer] growth into fiscal 2028, with growth potential thereafter remaining good," the analysts say. Jefferies upgrades its rating on the stock to buy from hold and raises its target price to 640 pence from 545 pence. Shares are up 2.6% at 518.60 pence. (anthony.orunagoriainoff@dowjones.com)
0435 ET - Shares of European semiconductor companies are in negative territory after solid gains on Monday that were fueled by jumps in South Korea's SK Hynix and Samsung Electronics. Shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are down 0.2% and 2.3%, respectively. BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, is down 4.5%. German chip maker Infineon Technologies declined 3.5%. STMicroelectronics shares fell 2.4%. Meanwhile, the E-mini Nasdaq 100 futures contract edged 0.2% lower, pointing to a weak opening for tech stocks in the U.S. after Labor Day. (mauro.orru@wsj.com)
0337 ET - It may take time for AI monetization to translate into higher valuations for Chinese tech companies, Daiwa analysts say in a research note. Chinese foundation models are gaining credibility, but economics remain under assessment. Investors are aware of the competitiveness of Chinese models, but continued evidence on sustainable pricing power and margin improvement will likely be required, they say. "We are likely more positive than the market on the path of AI monetization, particularly through cloud revenue growth, gaming productivity gains and foundation-model adoption," Daiwa says. (tracy.qu@wsj.com)
2342 ET - Gamuda's diversification across countries and projects may have been underestimated by investors, CGS International analyst Chong Tjen-San says in a note. Its 61.6 billion ringgit order book as of September includes Taiwan, Malaysia, Singapore and Australia. Data centers account for 15%, reducing its reliance on any single market or segment, he says. Earnings visibility should improve as 79% of the order book remains at an early execution stage, while Vietnam property launches are expected to support FY2027 sales, he reckons. Chong raises Gamuda's FY2027-FY2028 EPS forecasts by 2%-6% to factor in higher margins given the strong data center job wins. CGS raises Gamuda's target price to 6.05 ringgit from 5.78 ringgit, while maintaining an add rating on the stock. Shares are 1.5% higher at 4.66 ringgit. (yingxian.wong@wsj.com)
2219 ET - The Malaysian tech sector could remain supported by a broadening semiconductor upcycle and sustained earnings momentum, Hong Leong IB analysts Toh Woo Kim and Sam Jun Kit say in a note. Managements are becoming more confident on demand and capacity expansion through 2027, while global chipmakers are providing firmer growth guidance, improving earnings visibility. In the near term, Anthropic's pending S-1 filing could provide an early indication of AI monetization. A potential U.S. Fed rate hike may also weigh on sentiment, but is unlikely to prompt significant selling across the sector, with investors likely to prefer companies with stronger earnings visibility, they add. Hong Leong maintains an overweight rating on Malaysian tech sector, pegging Vitrox Corp., UWC, SAM Engineering & Equipment and Itmax System as top picks.
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