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.
0708 GMT - Infineon is a major beneficiary of demand for power for AI, J.P. Morgan analysts say in a note. They raise their rating on the German company to overweight from neutral. Infineon, a maker of chips and tech for the green-power and automotive industries, is long established and unlikely to be disrupted by new competitors, JPM says. The worst of a decline in auto demand may be behind the company, the analysts say. JPM raises its target price on Infineon shares to 48 euros from 40 euros; shares last closed at 37.09 euros. (joshua.kirby@wsj.com; @joshualeokirby)
0512 GMT - Tencent's debt metrics are expected to remain stable through the next 12 months, CreditSights analysts Stephanie Sim and Pius Xue say in a note. They forecast top-line growth to stay resilient, supported by healthy growth in its online advertising and gaming businesses. "We like the healthy balance sheet, robust free operating cash flow generation and strong liquidity of the company," the analysts add, noting Tencent may return to a position of more cash than debt by year's end. Still, they project a small but manageable decline in Ebitda margin on higher AI-related spending. CreditSights maintains an outperform rating and sees Tencent as a stable, long-term play in Asia and China. The company is also viewed as a good hedge against U.S. AI stocks. (jason.chau@wsj.com)
0300 GMT - Investors should prioritize Tencent's growth potential over short-term profitability, UBS analysts say in a research note. Tencent's Chinese tech peers, such as Alibaba and Baidu, have experienced valuation multiple expansion following announcements of additional AI investments, the analysts say. Tencent has lagged peers due to investors' concerns about its relatively slower pace of AI spending, the analysts note. Tencent's recent AI product launches and its commitment to further AI investments, suggest the stock is positioned for a valuation multiple re-rating driven by its growth potential, they say. Even after factoring in Tencent's planned AI investments, its 2026 adjusted EPS growth is still attractive compared with global gaming and advertising platforms, they add. Shares are last 0.1% lower at HK$512.00. (sherry.qin@wsj.com)
0250 GMT - Addvalue Technologies' potential spinoff and U.S. listing of its Inter-Satellite Data Relay System business could see the Singapore-listed company raise funds at a significantly higher valuation, Maybank analyst Jarick Seet says in a note. The analyst estimates the unit could have a market capitalization of US$200 million-US$300 million, noting U.S. peers trade at 70X-200X price-to-sales. A higher valuation could allow Addvalue to sell a stake and return cash to shareholders, Maybank says. The bank has a buy rating and a target price of S$0.120. Shares are up 3.5% at S$0.088. (venkat.pr@wsj.com)
2154 GMT - FiscalNote Holdings is the most recent company to reference artificial intelligence as it announces widespread layoffs. The company says that it will cut 25% of its workforce as it leverages AI automation and offshoring to cut costs. Earlier this month, Atlassian said it would cut 10% of its staff, citing the need to adapt to AI. And Block said in February that it would slash nearly half of its workforce as it moves to automate more labor with AI. The string of announcements comes amid growing concerns about the role of human workers in an economy increasingly run on AI tools and agents. (elias.schisgall@wsj.com)
1721 GMT - When it comes to artificial intelligence displacing software, the best defense is a good offense, according to Oppenheimer in a note. "Software suppliers need to be disruptors," the analysts say. "Companies that do not transform the architecture will likely be disrupted." They say software suppliers need to invest in AI-native platforms to first disrupt categories outside of the core business, and then the core business itself, even at the expense of near-term margin dilution. "Agents will work with humans, so software companies need to become the agentic layer for customers and disrupt other categories where the incumbents are innovating at a slower rate," the analysts say. "AI innovation is happening so fast that software companies should also accelerate rearchitecting platform and products with native AI solutions." (elias.schisgall@wsj.com)
1720 GMT - Oppenheimer analysts identify stocks they see as best- and worst-positioned to rebound from AI disruption, using a framework that benefits AI innovation, consumption-based pricing models, and sticky enterprise technology stacks, as well as favorable valuations. Within this framework, they see Oracle, Microsoft, and Agilysys as top picks. On the flip side, they name Adobe, Monday.com, Paycom Software, and Freshworks as most exposed to disruption, downgrading Freshworks to perform. "The suppliers whose solutions are more function-specific, primarily sell seat-based models, and limit AI revenue disclosures are most at risk of disruption from native AI and faster-moving competitors," they write. (elias.schisgall@wsj.com)
1712 GMT - Software companies should switch to a consumption-based pricing model if they want to remain strong in the face of artificial-intelligence-native competitors, Oppenheimer analysts write in a note. As businesses switch toward proliferating AI agents over human workers, software companies sticking to a per-seat pricing model may be left in the dust. With potentially millions or even billions of agents in play, "businesses will not want to pay a per-agent fee, but rather pay based on the agent usage," the analysts write. "The faster a company can lean into a consumption value model, the more defensible the moat and predictability of future growth." (elias.schisgall@wsj.com)
1700 GMT - Tesla's stock price doesn't really depend on is auto deliveries anymore, but on the narrative around the company's AI ventures like its robotaxi and Optimus businesses, UBS analysts say in a note. There have also been more questions on Tesla's Terafab project and solar business lately, the analysts say. "The amount of investor conversations we have about the traditional auto business and business fundamentals is very low," the analysts say. Investors have been saying recently that Robotaxi and Optimus updates are slower and more muted than expected, they add. Still, while sentiment will continue to drive the stock, Tesla's auto business is what primarily helps fund its cash flow and, in turn, its investments for growth, the analysts say. (kelly.cloonan@wsj.com)
1458 GMT - Pentagon staffers tell Reuters they are hesitant to stop using Anthropic's AI tools, despite Defense Secretary Pete Hegseth's designation of the company as a supply-chain risk. The military users see Anthropic's tools as better and more reliable than alternatives and sources tell Reuters that Anthropic's Claude remains in use by the military. The process of switching to alternatives could be time-consuming and costly. Some staff are slow-walking the replacement of Claude because they are still actively using it to create series of automated tasks and are betting on the Pentagon at some point reinstating use of Anthropic's tools, Reuters reports. (nicholas.miller@wsj.com)
0950 GMT - Micron Technology stock falls premarket as investors fear the boom in demand for artificial-intelligence memory is nearing a peak, Deutsche Bank's Melissa Weathers writes. Despite recording expectation-beating earnings for the second fiscal quarter and raising its revenue guidance well-above analysts' expectations, investors focus instead on past crashes in the memory market. "We see this cyclical caution from investors as prudent given past memory bust cycles, and acknowledge that the bear case is difficult to disprove in the near-term," Weathers writes. Micron's significant increase in capital expenditure raises concerns around its vulnerability to a memory market downturn. However, "such cycle peak fears are immature," Weathers adds. Micron falls 5.1% premarket. (josephmichael.stonor@wsj.com)
0938 GMT - Micron Technology's premarket share price drop is a product of sky-high investor expectations for the stock, Direxion's Jake Behan says. The artificial-intelligence memory-chip maker recorded a sharp rise in sales for the fiscal second quarter, well ahead of the company's own guidance. The earnings were "as good as it gets for Micron and for better or worse, that raises the bar heading into next quarter," Behan says. "That's likely what you're seeing play out in the initial aftermarket reaction." Micron shares fall 5.2% premarket. (josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 04:20 ET (08:20 GMT)
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