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.

1409 ET - Broadcom's OpenAI deal shows how well positioned it is to benefit from AI infrastructure scaling, CFRA Research analyst Angelo Zino says. It appears OpenAI is now chasing more than 30 gigawatts of new capacity, as the Broadcom deal is slated to build 10 gigawatts, Zino says. Broadcom is also gaining more business from other customers. Analysts had speculated that a new customer bringing in $10 billion, which Broadcom revealed in its last earnings report, was OpenAI, but this deal dispels that theory, Zino says. Zino expects there to be "upside from additional prospects to place large-scale orders in the coming years." (katherine.hamilton@wsj.com)

1304 ET - OpenAI's new agreement with Broadcom to deploy 10 gigawatts of custom AI chips adds huge potential to the chip designer's future earnings, say Melius analysts. The deal could be dilutive to margins but could add $40 billion of annual AI revenue upside, which could result in a per-share upside of $3 above Melius' current fiscal 2027 estimate of $13 a share. OpenAI has said it needs 250 gigawatts of capacity, implying even more upside beyond the current deal, while OpenAI's spending will likely force additional compute purchases from other Broadcom customers like Meta and Google, the analysts say. (nicholas.miller@wsj.com)

0738 ET - London Stock Exchange Group's partnership with Microsoft is likely to boost demand over the medium term, RBC Capital Markets analysts Ben Bathurst and Jude Neanor write in a note. In a joint statement, the stock-exchange and financial-information company said its data would be available across Microsoft Copilot for all users. The move is further validation of the Microsoft partnership and a strong endorsement of LSEG's data, particularly as AI adoption accelerates in the financial sector, they say. While the statement doesn't mention exclusivity, LSEG's broad data offering might still provide an advantage, they add. LSEG rises 1.6% to 89.18 pounds. (najat.kantouar@wsj.com)

0706 ET - China's semiconductor industry is expected to benefit from favorable memory market dynamics through 2026, Frank He and Cara Su of HSBC Qianhai Securities say in a note. NAND supply is likely to remain tight due to strict utilization controls by major suppliers. DDR5 DRAM prices could rise further, supported by AI server demand, while the DDR4 chip shortage may persist as major suppliers phase out production, they add. Rising prices and the push for local manufacturing are driving capacity expansion by memory leaders Yangtze Memory Technologies and CXMT, which should benefit domestic supply-chain companies, particularly equipment makers. HSBC's top sector picks are buy-rated GigaDevice, AMEC and Naura. (jason.chau@wsj.com)

0549 ET - Otsuka is expected to post growth in operating profit in fiscal 2026 on a stronger product mix from enterprise resource planning, security and cloud, Morningstar says in a note. It initiates coverage on the Japanese IT services firm with a narrow moat rating and a fair price estimate of Y3,700 per share. Analyst Makoto Naito says it's well-positioned as a key partner for small and medium-sized enterprises, with growing demand for complex IT and compliance management outsourcing. The analyst adds that concerns over slowing PC replacement demand following the end of Windows 10 support seem overstated. Shares last closed at Y2,989.00.(jason.chau@wsj.com)

0454 ET - Tencent will likely post strong 3Q results, with potential upside from its games segment, Citi analysts say in a research note. Tencent's 3Q revenue likely rose 13.5% on year to CNY189.7 billion, with online games up 17% at CNY60.6 billion, the analysts say. Tencent in September captured eight out of the top 10 mobile games by iOS grossing in China, they note. The average time spent on "Delta Force" in August has surpassed that of "Honor of Kings" as well as " Peackeeper Elite," showing the game's strong traction in terms of user activities and engagement, they say. Tencent's marketing services revenue likely sustained the momentum to rise around 20% on year in 3Q, benefiting from AI-powered ad tech upgrades, they add. Shares last ended at HK$639.00. (sherry.qin@wsj.com)

0441 ET - Shares of Nvidia and other major U.S. semiconductor stocks are on the rise premarket after President Trump said in a Truth Social post during the weekend that he wanted to help China, not hurt it. The more conciliatory tone came after Trump said he would hit China with a 100% additional tariff and impose new export controls on critical software products. Nvidia shares closed 4.9% lower at $183.16 on Friday. Shares are up 3.6% at $189.66 Monday premarket. Advanced Micro Devices closed 7.7% lower on Friday and the stock is up 4.2% Monday premarket. Intel shares closed down 3.8% last week and are up 2.6% premarket. (mauro.orru@wsj.com)

0431 ET - Shares in European semiconductor companies are up after President Trump said in a Truth Social post during the weekend that he wanted to help China, not hurt it. The statement came after Trump said he would hit China with a 100% additional tariff and impose new export controls on critical software products. European chip stocks fell Friday following the tariff threat, but are now recovering. Shares of Dutch chip-making equipment supplier ASML Holding are up 2.6%, with smaller rival ASM International up 2.4%. Shares of BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, are up 1.8%. German chip maker Infineon Technologies logs a 2.5% increase. Shares of STMicroelectronics, which supplies Elon Musk's Tesla and Apple, rise 3%. (mauro.orru@wsj.com)

0354 ET - Kingsoft Corp. shares jump as investors bet on greater domestic demand for its office software following signs of official adoption over Microsoft's products. Chinese state media Securities Times reported Sunday that China's Ministry of Commerce used Kingsoft's WPS software for the first time rather than Microsoft Word or PDF to issue a statement on rare-earth export controls last week. The move, widely discussed on Chinese social media, underscores Beijing's ongoing push for tech self-reliance amid intensifying U.S.-China tech rivalry. Kingsoft shares surged 13.5% Monday, on track for their biggest gain in more than three years. (sherry.qin@wsj.com)

0211 ET - The U.S. and China could accelerate supply-chain localization after trade tensions escalated again, Natixis economist Alicia Garcia Herrero says in a note. China's renewed tightening of export controls is "a quantum leap in severity and coverage of such controls," the economist says. The five newly added rare-earth elements are crucial for high-performance magnets in EVs and precision-guided munitions, affecting U.S. military industries, she notes. The U.S. will likely accelerate its investment in the rare-earth supply chain and limit other dependence on China, while China continues to build self-reliance in key sectors. Global companies, especially in the semiconductor, EV and military sectors, will pay a price for such bifurcation, she adds. (sherry.qin@wsj.com)

0152 ET - Xiaomi's shares slump, falling 7.7% to HK$48.04. The stock is among the largest decliners on the Hang Seng Index, which is down 2.9% amid a broad equity selloff following renewed U.S.-China trade tensions. Citi analysts say in a note that Xiaomi's phase-two plant R&D building failed the final acceptance of the Beijing government, citing local media. However, the analysts reckon the building is unrelated to Xiaomi's electric-vehicle production and is a supporting service office. They continue to expect the Beijing-based technology company to exceed its 2025 EV delivery target of 350,000 units. Xiaomi is also unlikely to be exposed to the new U.S. tariff risks, they add. (megan.cheah@wsj.com)

0100 ET - Axiata sees a key re-rating catalyst from the imminent sale of its 73.5% stake in Indonesian subsidiary Link Net, with a possible deal by 1H next year, CIMB Securities analyst Foong Choong Chen says in a note. He values the stake at MYR1.46 billion. The divestment would remove Link Net's earnings drag, reduce net debt and boost 2026-2027 core net profit estimates by 29%-51% if Link Net is sold by end-2025, he adds. CIMB upgrades the telecommunications company's rating to buy from hold, and raises its target price to MYR2.90 from MYR2.60 to factor in the potential asset monetization. Shares are 1.6% lower at MYR2.54. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

October 13, 2025 16:50 ET (20:50 GMT)

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