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.

1109 ET - Expanding AI data centers have a growing impact on municipal bond markets, spurring issuance while presenting new risks, LPL Financial's Lawrence Gillum and Brian Booe say in a note. Power-hungry data centers require grid upgrades, leading to an increase of more than 25% in electric power issuance so far this year. "The gas prepayment sector, long a niche, has grown to more than 5% of the municipal index with roughly $100 billion outstanding," Gillum and Booe say. Host communities can benefit from an increased tax base. However, backlash against higher utility bills associated with data centers represents a risk, they say. (paulo.trevisani@wsj.com; @ptrevisani)

0946 ET - ASML Holding's productivity gives it a competitive edge over new rivals, Bank of America analysts write in a note. Investor interest in alternatives to the Dutch supplier of semiconductor-making equipment continues to grow, they say. However, the proliferation of lithography start-ups is evidence of ASML's strategic importance rather than a sign of weakness, they add. Lithography--which refers to the technique that makes it possible to manufacture chips--has become the main obstacle to increasing advanced capacity, they note. "ASML's strongest defense is not preventing alternative technologies from emerging, but continuing to raise scanner productivity, overlay accuracy and reliability faster than competitors can close the gap." Shares are up 2.9% at 1,558 euros. (najat.kantouar@wsj.com)

0001 ET - With the takeoff of agentic AI earlier this year, the central processing unit market is set for faster growth and could become the new growth driver for TSMC, Bernstein analysts say in a research note. The analysts now expect TSMC's CPU revenue to hit the high $30 billion range in 2027, making up a mid-teen percentage of its total revenue. As a result, CPUs could be as significant as AI accelerators, including both GPUs and ASICs, in terms of wafer revenue contribution in 2027. Bernstein raises TSMC's target price to 3,300 New Taiwan dollars from NT$2,780 and notes that its valuation is cheap compared with peers. Shares last traded at NT$2,400.00. (sherry.qin@wsj.com)

2217 ET - Axiata is likely shifting its asset monetization stance towards optimizing value over a longer period, which could delay the divestment of its infrastructure assets, Maybank IB analyst Tan Chi Wei says in a note. The company had previously targeted the sale of its edotco and Linknet in 2026. Tan notes company's earnings recovery and eventual balance-sheet improvement are potential re-rating drivers, with its dividend commitment seen as sustainable at an assumed 0.11 ringgit per share in 2026, with an implied yield of about 5.5%. Maybank maintains a buy rating on Axiata and keeps target price at 2.90 ringgit. Shares are 0.5% higher at 1.92 ringgit. (yingxian.wong@wsj.com)

2144 ET - Malaysia's semiconductor sector could witness an uneven recovery amid a cautiously optimistic outlook despite robust global semiconductor sales growth driven by strong AI demand, TA Securities analyst Chan Mun Chun says in a note. Growth is expected to be led by companies exposed to AI and data-center infrastructure. Players with significant exposure to traditional end markets such as computers and smartphones may face a more challenging environment due to rising memory costs, he reckons. Geopolitical tensions and potential ringgit appreciation are also key risks to the sector's growth outlook, he adds. TA Securities maintains a neutral rating on Malaysia's semiconductor sector. It pegs Dagang NeXchange as its top pick, as its semiconductor unit, SilTerra, is seen benefiting from strong silicon-photonics orders amid growing AI and data-center demand.(yingxian.wong@wsj.com)

2137 ET - Malaysia's technology sector could see several near-term rerating catalysts in 2H, including an earnings upgrade cycle and potential inclusion of technology stocks if the KLCI expands to 50 constituents from 30, CIMB Securities analyst Mohd Shanaz Noor Azam says in a note. Ringgit depreciation against the dollar and election-related developments could also support investor sentiment and further P/E multiple expansion, he says. Artificial-intelligence infrastructure demand remains a key growth driver, with Vitrox, Malaysian Pacific Industries, Inari Amertron and Nationgate seen as beneficiaries. The Wolfspeed-Liteon partnership also reinforces AI-driven silicon carbide adoption, benefiting Malaysian power-management players such as Malaysian Pacific Industries, he adds. He prefers companies converting AI demand into orders and recurring revenue. CIMB maintains an overweight rating on Malaysia's tech sector. (yingxian.wong@wsj.com)

2052 ET - Life360's bull at Citi sees a number of positives from its latest quarterly update despite the disappointing lack of an earnings guidance upgrade. Analyst Siraj Ahmed flags strong growth in paying subscribers, a pickup in international user growth, a better-than-expected Ebitda margin, and U.S. price rises linked to the location-app developer's launch of its pet tracker product. However, June-quarter advertising gross margin fell short of Ahmed's forecast. He tells clients in a note that Life360's unchanged Ebitda guidance means that its 3Q earnings could miss consensus by a distance. Citi has a last-published buy rating on Life360's U.S.-listed stock. Its ASX-listed stock is down 14% at 25.38 Australian dollars. (stuart.condie@wsj.com)

1930 ET - Shares in SGH are likely to fall after lower-than-expected FY27 guidance, Barrenjoey says. ASX-listed industrial conglomerate SGH issued FY27 guidance for flat to low-single-digit EBIT growth. That is below consensus for 3% growth--or 5% growth versus the new FY26 base--says the Australian investment bank. SGH reported FY26 EBIT growth of 1%, at the bottom end of guidance. Coates is the driver of the slightly softer result, Barrenjoey says. "On the positive side, operating cash flow was better" than expected--up 7% versus consensus--resulting in net debt of A$3.7 billion coming in lower than expected, it says. Barrenjoey has an "overweight" rating and A$55.00 target on SGH. Shares ended Monday at A$46.34. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1820 ET - Life360's failure to raise its annual earnings outlook probably sparked the after-hours plunge in the location-app developer's U.S. stock, Jefferies analyst Roger Samuel says. Samuel, who has a "buy" rating on the stock, tells clients that Life360 reported a good set of numbers across users, subscriptions and revenue. However, he points out that the dual-listed company's shares had been on a hot streak heading into the result and thinks that investors could have been anticipating an upgrade to the full-year earnings outlook. Life360's improved revenue guidance now sits above prior consensus, he adds. Samuel has a target price of 30.00 Australian dollars on Life360's ASX-listed stock, which is at A$29.48 ahead of the local open. (stuart.condie@wsj.com)

1757 ET [Dow Jones]--President Trump's media business recently unveiled a controversial service, called Truth API, that lets customers pay for instant access to the president's Truth Social posts. So far, the service has more than 10 customer agreements signed, interim CEO Kevin McGurn says. "Our new Truth API product is already generating revenue," McGurn says on the company's 2Q earnings release, in which it reported deepening losses. The Wall Street Journal previously reported that Trump Media plans to charge the API customers $100,000 a month, or $60,000 a month if traders commit for years. (dean.seal@wsj.com)

1413 ET - Concerns about the returns on steadily rising artificial-intelligence spending should wane going forward, as earnings reports increasingly show AI monetization, JPMorgan analysts write in a note. Though most hyperscalers are expected to have negative free cash flow in 2027, "demand and order coverage are improving relative to capex, as evidenced by rising backlog-to-capex and book-to-bill ratios," the analysts write. "This suggests that monetization may start ramping faster than spending, which should support stronger future revenue growth and further alleviate concerns about ROIC." Backlogs are high and converting into recognized revenue growth, while demand also remains high and rising, the analysts add. (elias.schisgall@wsj.com)

1319 ET - Businesses are likely to continue pulling forward their spending on servers and storage arrays for at least a couple of years, Morgan Stanley analysts write in a note upgrading HPE, formerly known as Hewlett Packard Enterprise, to overweight. While accelerated enterprise spending won't last forever, and investors should be cautious as estimate revisions hit their peaks, Morgan Stanley's checks, surveys and analysis indicate "an infrastructure cycle that is proving both stronger and more durable than we previously anticipated," the analysts write. "While execution remains the key risk, we believe HPE now offers the best combination of earnings upside, valuation support and re-rating potential within our enterprise infrastructure OEM group." Shares gain 3.7% to extend this year's gain to 130%.