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.

1401 ET - Workday's workforce reduction is likely part of its effort to streamline its business, Deutsche Bank analysts say. The company is cutting 2.5% of its staff, primarily within its product and technology teams. The analysts believe the move was not intended to free up investment capacity for this year, since Workday reiterated its full-year guidance when it announced the layoffs. Instead, the cuts likely create some additional capacity for other investment priorities next year, the analysts say.(katherine.hamilton@wsj.com)

0544 ET - Shanghai Biren Technology raises its 2027 revenue target to 20 billion yuan, as the average selling price of its soon-to-be-released chip has doubled, DBS analysts say in a note after a meeting with management. Biren completed the design process of its second-generation chip, the BR20X, in August and expects customer adoption test results within the next three to four months, they say. The average selling price was reset to 300,000 yuan from 150,000 yuan while it still expects to ship 70,000 chips next year, the analysts say. Management thinks that as Nvidia H200's street prices in China have risen to 300,000 yuan-400,000 yuan, BR20X's new price tag is justified as it can deliver 80%-120% of H200's performance. Shares last ended at 37.38 Hong Kong dollars. (sherry.qin@wsj.com)

0516 ET - The Kuala Lumpur Composite Index is set to have a wider buffer around its expanded 50-stock gauge, CIMB Securities' Ivy Ng Lee Fang says in a note. With inclusion and deletion thresholds revised to 40th and 61st, respectively, from 25th and 36th, the risk of frequent index turnover is reduced, the analyst writes. The changes will take effect with the December review as the KLCI expands to 50 constituents from 30. Based on Sept. 28 market-cap data, Ng says Unisem and Kelington could enter the index, replacing Genting Malaysia and Malayan Cement. Westports, United Plantations, Vitrox and Sime Darby are among others that could be included, she adds. The final list will be based on market-cap data as at Nov. 23. (yingxian.wong@wsj.com)

0423 ET - Shares of European semiconductor companies are in the green as investors await Micron Technology results after the U.S. market closes. Investors will be scrutinizing figures and commentary from the memory chip maker for signs of how artificial-intelligence demand is holding up. Micron shares are up 0.6% at $1,071.70 premarket. In Europe, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are up 1.2% and 1.8%, respectively. BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, is up 0.4%. German chip maker Infineon Technologies' stock gains 1.5%. STMicroelectronics shares are up 0.1%. (mauro.orru@wsj.com)

0407 ET - Nokia could report third-quarter sales and EBIT slightly ahead of consensus, but the market needs to see near-term sales upgrades to take the stock up significantly, J.P. Morgan analysts write. The market remains concerned about Nokia's ability to execute strong AI and cloud orders due to component shortages, so supply commentary will be a key focus. If Nokia can raise near-term sales and margin guidance in network infrastructure, it would increase market confidence in order delivery capability. The bank remains very bullish on the stock, and if Nokia can beat earnings expectations, confirm supply and lift guidance, "we believe the upside on the stock could be very strong." It rates Nokia at overweight with an 18 euro price target. Shares fall 0.2% to 9.14 euros. (dominic.chopping@wsj.com)

0400 ET [Dow Jones]--There's no one-size-fits-all solution for managing AI spending within a business, but 75% of the companies who have most effectively leveraged AI have some sort of guideline on token spending, according to a new Boston Consulting Group report. About half of those companies actively encourage employees to maximize their AI usage, while 22% have limits or controls to manage spending. "Organizations that have a strong financial muscle are well-prepared to leverage that capability for AI," BCG Managing Director Natasha Taylor says, adding that businesses are growing smarter about routing less complex AI tasks to cheaper models. (elias.schisgall@wsj.com)

0400 ET [Dow Jones]--AI spending is increasingly coming from all parts of the enterprise, not just the IT budget, according to a new Boston Consulting Group report. Non-IT spending on AI was five to six times higher than IT spending among surveyed businesses, and IT budgets held flat year over year while overall AI spending tripled. The growth of spending on AI across business units indicates that effective AI adoption is "a strategic imperative for the whole enterprise," BCG Managing Director Natasha Taylor says. "To be successful requires engagement from all of the functions in an organization." (elias.schisgall@wsj.com)

0027 ET - Megaport's new contracts further support the view at Jefferies that the compute-as-a-service provider is one of Australia's highest-leverage AI-infrastructure exposures. Analyst Roger Samuel lists improving contract economics, reduced funding risks, and growing visibility over future earnings among the attractions at Megaport, which he continues to rate as a buy. Samuel tells clients in a note that the company's core network business is also doing well, with annual recurring revenue up by 4.5% in the two months through Aug. 31 and net retention rates at their highest since 2023. Jefferies lifts its target price by 5.8% to 27.50 Australian dollars. Shares are down 1.2% at A$20.375. (stuart.condie@wsj.com)

2241 ET - Naura Technology could face component supply constraints inthe near term due to strong demand, Daiwa analysts say in a research note. Daiwa expects its revenue to increase to 12 billion yuan in 3Q and 15.8 billion yuan in 4Q. Revenue could be weighted toward 4Q due to the time needed to validate locally sourced chip equipment components, they say. "We expect Naura to continue gaining market share among its key leading-edge fab clients, supported by portfolio expansion," they note. The brokerage raises Naura's target price to 715.00 yuan from 685.00 yuan. However, given the around 40% appreciation in its share price so far this year, Daiwa downgrades Naura to outperform from buy. Shares are last at 621.50 yuan. (sherry.qin@wsj.com)

2042 ET - Megaport's bull at Macquarie recommends investors drop any resistance to the compute-as-a-service provider's strong momentum. One of the investment bank's analysts tells clients in a note that the Australian company's reallocation of pooled processors to a new contracts highlights management's focus on returns. They explain that the customer's A$282 million prepayment gives Megaport a capex payback period of about eight months, compared with between 16 and 22 months for pooled capacity. This reduces utilization and funding risk, the analyst adds. Macquarie keeps an outperform rating on the stock and raises its target price 8.4% to 34.70 Australian dollars. Shares are down 0.5% at A$20.525.