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.
0912 ET - GE Vernova CEO Scott Strazik says the company's $9 billion acquisition of Trench Group, a high-voltage grid equipment manufacturer, marks an important step forward in strengthening and scaling its electrification business in the high- and medium-voltage markets globally. The deal will be additive to earnings on day one and add to GE Vernova's portfolio "industry-leading technology to innovate into the future and serve this growing market," Strazik says on a call with analysts. GE Vernova estimates the global high-voltage market opportunity will reach $130 billion by the end of the decade. "Technology for high-voltage solutions will broaden our grid-equipment portfolio and expand our presence across product lines where we have a modest presence today," Strazik says. (connor.hart@wsj.com)
0906 ET - GE Vernova estimates the high-voltage market will reach $130 billion by the end of the decade, and CEO Scott Strazik says there are many factors driving the company's conviction. "Data centers require large electricity loads, driving the increasing need for more efficient high-voltage equipment," he says on a call with analysts, noting that Trench Group has already secured multiple supply agreements with hyperscalers over the past two years. "In addition, global utilities are also building out more high-voltage infrastructure," Strazik says. "Today's grid loses as much as 8% from power generation to end use, and the upgrade of the grid to higher voltages dramatically reduces energy losses, making the whole grid more economical." (connor.hart@wsj.com)
0858 ET - GE Vernova's growth is accelerating, driven by both its core business and new offerings, CEO Scott Strazik says on a call with analysts. The energy equipment company, formed from the breakup of General Electric, says orders nearly doubled in the recent quarter, to $29.3 billion, while backlog grew about $20 billion sequentially, to $197 billion. "We now expect our backlog to exceed $200 billion in the fourth quarter," Strazik says. "We continue to see strong pull from customers for the solutions we offer. This demand is not only for our existing equipment, but also for services, where we saw 10% order growth in the quarter." (connor.hart@wsj.com)
0638 ET - ASM International's sales projections for next year are above market expectations, Jefferies analysts write in a research note. The Dutch group, which supplies chip makers with wafer processing equipment for the deposition of thin films, said 2027 revenue should exceed 5.7 billion euros. That is above consensus of 5.42 billion euros and a Jefferies forecast of 5.33 billion euros, analysts say. The company said it expected logic and foundry customers--those seeking to produce the integrated circuits that power everything from smartphones to computers and data centers--to be the strongest growth driver next year. ASM International shares trade 3.1% higher at 766.00 euros. (mauro.orru@wsj.com)
0438 ET - The commercialization of AI remains firmly on track, with Asia relatively well positioned as the AI cycle moves toward broader deployment from model development, according to Eastspring Investments. "There is growing evidence that AI is generating tangible returns across Asia's technology sector, although the level of impact varies by industry and position within the value chain," it says in a research note. Software companies are using AI to improve productivity, shorten development cycles and automate business processes, Eastspring writes. Cloud platforms are also increasingly commercializing AI services for enterprise customers, it adds. (tracy.qu@wsj.com)
0432 ET - Intertek's update should reassure prospective buyers EQT as they wait for regulatory approval to take the company private, RBC Capital Markets analysts Karl Green and Andrew Brooke say in a note. In common with its peers, the testing specialist reported good growth across most of its portfolio with the exception of its World of Energy division, which is suffering from R&D cuts and disruption from the Iran conflict, the analysts say. "In practice, just a footnote before the group goes off market," RBC says. Shares are down 0.1% at 5,915 pence and are up 28% year-to-date. (anthony.orunagoriainoff@dowjones.com)
0431 ET - China will be critical in determining whether Apple can sustain momentum for its latest premium iPhones after an uneven global start, according to Counterpoint Research. The research firm notes that worldwide sales of the iPhone 18 Pro series rose 3.1% in the first three weeks compared with those for the iPhone 17 Pro lineup a year earlier, with China accounting for most of the gain. Sales in China jumped 29% on year, helped by better product availability and higher-priced Android rivals. India also delivered solid growth, particularly for the lower-priced Pro model. However, demand softened in the U.S. and Japan as higher prices deterred customers from upgrading. Analysts say the coming weeks will show whether China's strength reflects lasting demand or purchases pulled forward from later in the upgrade cycle. (sherry.qin@wsj.com)
0407 ET - The AI Tech sell-off may have an impact on Asian currencies, according to BofA Securities in a research note. The significant correction seen in recent weeks among Asian tech stocks were accompanied by significant foreign portfolio equity outflows, the bank says. Korea has registered outflows of $14 billion and Taiwan of $26 billion in this month alone, BofA says. Of all Asian currencies, New Taiwan Dollar appears the most correlated and exposed to the factor of AI stock returns, followed by the Thai Baht, the Chinese Yuan and the South Korean Won, BofA estimates. (tracy.qu@wsj.com)
0400 ET - ASM International reported positive third-quarter results that point to continued earnings momentum, with new guidance for 2027 that underscores the company's confidence in its outlook, analysts at J.P. Morgan say in a research note. The Dutch provider of semiconductor-making equipment surprised with its 2027 expectations given that it has never provided guidance for the year ahead so early, which suggests its visibility into next year's trends is very strong, the analysts say. Moreover, ASM has historically been cautious on its outlook, which makes it likely that the newly introduced 2027 guidance will be increased, they add. (adria.calatayud@wsj.com)
2148 ET - SK Hynix's latest earnings should soothe fears that AI spending is running out of road, says etoro analyst Josh Gilbert. The Korean chip giant has answered investors' two biggest questions by sharply lifting shareholder returns and locking in more than half of its capacity for the next two years under long-term contracts, Gilbert says. While the memory industry has a habit of building too much at the same time, Hynix's results offer confidence: An 80% operating margin shows pricing power that only exists when customers are fighting each other for supply, he notes. Hynix's biggest customers are lining up to secure supply, and nobody signs a five-year contract if they think the build-out is about to stall. (fabiana.negrinochoa@wsj.com)
2119 ET - Malaysia's brain drain remains a challenge to its ambition of becoming a high-income country, says Capital Economics senior Asia economist Gareth Leather. Around 2.5 million Malaysians live abroad, with more than 60% of the diaspora in Singapore, due to higher salaries and better career prospects, he says in a note. Despite Malaysia having a strong electronics industry, its capital-intensive nature limits job creation. The government has introduced tax incentives to encourage skilled Malaysians to return, but these alone are unlikely to reverse the brain drain, he reckons. Unless Malaysia can narrow the wage gap with Singapore, skilled workers could continue seeking opportunities abroad, weighing on the country's long-term economic growth, he adds.(yingxian.wong@wsj.com)
1337 ET - Corning CEO Wendell Weeks says SpaceX's Starlink may no longer be purely a competitive threat. During Corning's quarterly earnings call, an analyst asked if Starlink could become a "frenemy" as the low-earth orbit satellite business moves toward terrestrial infrastructure. Weeks says he agrees with the characterization, and suggests Starlink could go so far as to turn into a customer, given its move into data centers, which require fiber optics like the kind Corning offers. "I think they're an important part of the mosaic and we like customers," Weeks says.
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