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.

0807 GMT - Mitsubishi Electric's new medium-term business strategy will likely include opportunities from data centers for public utility, factory automation, air-conditioning and optical device businesses, among other things, Jefferies analysts say in a note. The Japanese company is expected to unveil its plans later this week. The company's stock is up 43% year to date, driven in part by expectations for future overseas defense projects. Yet, markets have yet to fully incorporate the magnitude of profit growth in its infrastructure-related projects and its factory automation business, the analysts say. Jefferies maintains a buy rating on the stock and raises its target price to 7,700 yen from Y6,800. Shares closed 4.1% higher Monday at Y6,560. (kosaku.narioka@wsj.com; @kosakunarioka)

0741 GMT - NetEase's planned summer launch of its Sea of Remnants game is expected to re-accelerate its gaming growth in 2H, Nomura analysts Jialong Shi and Rachel Guo say in a note. They note that the Chinese company's better-than-expected 1Q results reflect the strong resilience and enduring popularity of its decade-old game titles. Nomura expects online game revenue growth to rise to 9% in 2H from 5% in 1H. The bank maintains its buy rating on NetEase and keeps its $155.00 target price on the company's ADRs, which last closed at $116.55. (jason.chau@wsj.com)

0647 GMT - Taiwan's Taiex ended 3.3% higher at 43644.40, supported by semiconductor-related stocks. Nvidia's strong earnings last week further boosted market sentiment, sending shares across its supply chain higher. "Both domestic and foreign institutional buying amid continued earnings upgrades" have been supporting Taiwan stocks, Goldman Sachs analysts said in a note. Meanwhile, Nvidia CEO Jensen Huang arrived in Taipei over the weekend ahead of Nvidia GTC and Computex 2026. Shares of TSMC, the world's largest contract chip maker, rose 2.4%, Foxconn Technology gained 4.4% and MediaTek surged 10%. Delta Electronics, which specializes in data-center power management, jumped 9.3%. (sherry.qin@wsj.com)

0431 GMT - NetEase's gaming outlook looks solid, according to Nomura analysts in a research note. 1Q could've been a challenging quarter for NetEase's gaming business considering its very high year-on-year base effect and a lack of big new titles, the analysts say. However, the company managed to deliver a 6% rise in revenue during the quarter, which was better than market expectations, they say. This "clearly reflects the high resilience and enduring popularity of [NetEase's] decade-old titles," they note. Nomura also expects a new game with strong potential to be launched soon. It is likely to "maximize exposure during the peak summer gaming season". Nomura keeps a buy rating and a target price of $155.00 on its ADRs, which last traded at $116.55. (tracy.qu@wsj.com)

0239 GMT - NetEase's gaming business is driven by a diversified portfolio, not hit games, which delivers consistently resilient financial performance, Morningstar analyst Ivan Su says. "Fantasy Westward Journey," a 20-year-old franchise, hit all-time high revenue on both mobile and PC in 1Q, the analyst says. "This should alleviate investor concerns about a cliff-edge decline in revenue from NetEase's older titles," he says. Meanwhile, iOS and Android app store commission reductions, as well as in-game purchases shifting to the PC version, where there are no app-store commissions, are two structural drivers for NetEase's margins, he adds. Shares last closed 5.7% higher at HK$181.50. (sherry.qin@wsj.com)

0222 GMT - Lenovo's fiscal 4Q results strengthen case for re-rating of its shares, says DBS analyst Jim Au in a research note. "Lenovo has now demonstrated that its AI infrastructure growth can convert into profit," the analyst says. Investors increasingly view Lenovo as part of the AI infrastructure and a hybrid AI platform rather than just a PC maker, he says. DBS expects Lenovo's infrastructure group revenue to maintain robust growth in the 30%-40% range and operating margin to continue approaching its long-term target of 5%. AI demand boosted by agentic AI penetration, enterprise inference adoption, broader rack-scale deployments, and higher-value storage solutions are all expected to support the segment's top line, Au notes. DBS raises Lenovo's target price to 23.50 Hong Kong dollars from HK$19.00. Shares last ended at HK$15.75. (sherry.qin@wsj.com)

0107 GMT - Malaysia's data center capital expenditure cycle could remain intact as sustainability-focused facilities drive demand for energy transition and water efficiency projects, despite Middle East geopolitical tensions, analysts at CIMB Securities say. Malaysia's committed maximum data center load could rise ten-fold to 7,100 MW from 710 MW in September 2025, supported by growing interest from U.S. and international operators seeking stable markets for AI-powered infrastructure, Kenny Mak Hoy Ken and Wei Yi Tan say. Larger IT loads and Selangor's 30% local content mandate are also expected to benefit local contractors and equipment suppliers, they say in a note. CIMB expects Gamuda, IJM Corp. and Sunway Construction to remain top picks for turnkey data center projects. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

May 25, 2026 04:20 ET (08:20 GMT)

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