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.
0812 GMT - Shares of European semiconductor companies start the new week in green territory, building on gains from Friday. Investors have rewarded stocks exposed to artificial intelligence in recent days. In Asia, South Korea's SK Hynix closed 0.6% higher, while Samsung Electronics closed up 5%. In Europe, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are up 2.8% and 1.9%, respectively. BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, is up 0.1%. German chip maker Infineon Technologies gains 2.4%. STMicroelectronics shares are up 2.3%. Meanwhile, the E-mini Nasdaq 100 futures contract edged 0.8% higher, pointing to a positive opening for tech stocks in the U.S. (mauro.orru@wsj.com)
0611 GMT - South Korea's aggressive investment in artificial-intelligence infrastructure could strain the credit profiles of companies participating in the AI buildout, S&P analysts say. The country could invest about $900 billion in data centers over the next decade, significantly expanding data-center capacity for telecom and other companies, analysts led by James Kim write in a note. Investment burdens would rise sharply for participating companies, weighing on their credit profiles, they say. The country's aggressive AI buildout--which focuses on data centers, semiconductors and physical AI under President Lee Jae Myung's "Three Mega Projects" initiative--could require 1,800 trillion won to 2,000 trillion won, equivalent to $1.3 trillion-$1.4 trillion, in investments over the next decade for chips and data centers alone, they add. (kwanwoo.jun@wsj.com)
0509 GMT - Indonesia's colocation data-center capacity is expected to grow six times between 2026 and 2030, even after accounting for potential construction delays, Nomura analyst Ahmad Maghfur Usman says in a note. The bank initiates coverage of Total Bangun Persada at buy with a target price of 2,000 rupiah. The analyst says DCI Indonesia and unlisted Digital Edge have already started a major building phase and are expected to control 46% of the 4.8 gigawatts of planned capacity after 2030. Shares of Total Bangun Persada are up 3.6% at 1,600 rupiah, while DCI is flat at 202,000 rupiah. (venkat.pr@wsj.com)
0437 GMT - China's ongoing AI boom is likely to widen both demographic and geographic inequality, which could further dent demand, say Nomura economists in a note. The current status of the economy could be best described as a big divergence characterized by domestic weakness. "We expect Beijing to initiate a new round of supportive measures," they say, but expect the scale of such measures to be limited. Considering ample market liquidity and falling government bond yields, Nomura maintains its forecast for no rate cuts until 2Q next year. (monica.gupta@wsj.com)
0057 GMT - The chip-industry boom is expected to generate substantial corporate cash in South Korea, with the extent to which companies repatriate overseas earnings likely to be a key determinant of domestic financial-market dynamics, Goldman Sachs analysts say. South Korean semiconductor companies are projected to generate roughly 150 trillion won in net cash, equivalent to 4.9% of gross domestic product in 2026, and the figure could rise to 9.3% of GDP in 2027, analysts led by Irene Choi write in a research note. Historically, companies have repatriated around 60% of their foreign-affiliate earnings on average, they note. They expect wage and dividend payments by major chip companies to reach 5.2% of GDP in 2027, the highest level in the available historical data. (kwanwoo.jun@wsj.com)
0041 GMT - Japanese bank stocks look relatively attractively valued, as the potential benefit of rising interest rates doesn't appear to be fully priced in, T. Rowe Price's Daniel Hurley says in a note. The U.S. asset manager expects the Bank of Japan to continue to tighten, which will likely present a stock-selection opportunity, the portfolio specialist for Japanese equity strategy says. While T. Rowe Price remains constructive on the long-term potential of artificial intelligence, growth expectations are already reflected to a significant extent in the valuations of many AI stocks, the U.S. asset manager says. Improving corporate governance, stronger capital discipline, dividends and share buybacks can also support companies even where underlying earnings growth is relatively modest, it says. Japan's stock market is closed for holidays Monday through Wednesday.
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