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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.
1518 ET – Super Micro Computer’s move to sharply boost its gross margin outlook isn’t just a good sign for the server company, Wedbush Securities analysts say in a note. The updated guidance also offers an encouraging signal for other server players like Dell and Hewlett Packard Enterprise, the analysts say, so long as it was driven by strong AI server demand that outpaced supply. The analysts say that if Super Micro’s raised forecast is in fact a result of scarce supply that allowed it to sell at higher prices, those other players should benefit from the same dynamics. Shares of Dell were recently up 9.6%, while HPE shares rise 3.5%. ([email protected])
1247 ET – When asked about the risk posed by SpaceX’s Starlink, AT&T CEO John Stankey says his company is in a good spot. “There are going to be new competitors, and there are going to be folks who come in, but the reality is, they’re coming to the game very late after this industry has been established,” he says during an appearance on CNBC. New players will have to catch up with substantial amounts of infrastructure investment that’s been going on for decades, he says. ([email protected])
1145 ET – Super Micro Computer’s recent business update—in which it sharply raised its gross margin outlook for the quarter—provides a much-need reprieve, given recent headlines regarding export circumvention to China in May, and the more recent announcement of the detention of four employees related to an investigation in early July by Taiwanese authorities, Raymond James analysts say in a research note. The analysts are encouraged by the company’s recent momentum, but they opt to leave their estimates unchanged until they hear more. “We suspect supply constraints around memory and other components will remain bottlenecks in the immediate term, and the timing around revenue recognition remains uncertain.” ([email protected])
1137 ET – Wedbush analysts didn’t expect Super Micro Computer to sharply increase its gross margin outlook late Tuesday. That being said, they postulate that the raise stemmed in part from a supply-demand imbalance. “Super Micro likely was able to take advantage of scarcity to more favorably price products and/or shift customers to a richer mix of servers,” the analysts say in a research note. If that is the case, the upside might stick around, and Super Micro might be able to produce “meaningfully better” gross margins and per-share earnings for the next several quarters, the analysts write. Shares pop nearly 25%. ([email protected])
1134 ET – Super Micro Computer’s recent business update came as a pleasant surprise to investors on two fronts, JPMorgan analysts say in a research note. The artificial-intelligence server firm late Tuesday sharply raised its gross margin outlook for the current quarter, for one. And it also guided for higher-than-expected orders, the analysts say. The updates were well received on Wall Street, with Super Micro’s stock up 25%. Peers including Dell Technologies and Hewlett Packard Enterprise also got a boost, up 9.3% and 5.2%, respectively. The question now is how long the growth can last, the analysts say: “Heading into the earnings call on August 11th, we would expect investors to focus on the sustainability of these margins, particularly given the ever-present overhang associated with memory headwinds.” ([email protected])
1006 ET – GE Vernova raised its full-year free cash flow outlook to between $11.5 billion and $12.5 billion, up from $6.5 billion to $7.5 billion, after a slew of slot reservations for its gas-powered equipment in 2Q. The company says slot reservation agreements grew to 116 gigawatts from 100 gigawatts, and are now on track to hit 125 gigawatts by the end of the year. Year-to-date, the company has generated about $10 billion in free cash flow which is 2.5 times more than it did in 2025, CEO Scott Strazik says on a call with analysts. “We expect our free cash flow in the first half of the year to be substantially higher than the second half, as many of these slot reservations convert to orders,” CFO Ken Parks says on the same call. ([email protected])
0814 ET — Rogers Communications 2Q wireless metrics point to a continued challenge to onboard new users as it navigates a competitive Canadian mobile market. Postpaid net additions slip to 22,000 from 35,000 a year earlier, reflecting softer gross adds and ongoing promotional pressure, though churn improved to 0.94%, suggesting better customer retention. Meanwhile, prepaid trends were mixed as gross additions rose sharply, but net adds fell and churn jumped to 5.01%, which points to higher turnover in lower-value segments. Monthly mobile average revenue per unit, ARPU, declined to C$54.25 from C$55.45. Overall, Rogers is adding subscribers, but slower postpaid growth and lower ARPU shows the continued challenge of navigating intense competition for a smaller pool of customers. ([email protected])
0538 ET – Chinese government-linked funds’ large-scale equity purchases should help bolster investor sentiment, Julius Baer analysts Eric Mak and Richard Tang say. The intervention by the funds, commonly known as the “national team,” underscores policymakers’ commitment to stabilizing markets and supporting strategic technology sectors amid recent volatility driven by a global equity selloff and concerns over domestic liquidity. While the “national team” has intervened in markets before, the analysts say this round differs in its focus on chip makers, artificial-intelligence and technology hardware stocks, rather than large-cap financials and state-owned enterprises. Julius Baer remains bullish on the long-term outlook of China’s AI sector.([email protected])
0525 ET – ASML Holding’s plans to boost output of its semiconductor-making machines in 2027 and 2028 show that demand visibility extends unusually far, UBS analysts say after hosting a virtual roadshow with ASML CFO Roger Dassen. The Dutch group is considering a roughly 30% boost to the output of its extreme ultraviolet machines for 2027 and another 30% increase for 2028 as customers have already placed a large number of orders. That unusually far visibility reinforces the view that semiconductor demand is likely to exceed supply for an extended period, analysts say. ASML shares trade 1.9% lower at 1,563.40 euros. ([email protected])
0508 ET – Chinese game stocks led losses in Hong Kong as investors’ attention returned to AI hardware companies. Semiconductor shares extended their global rebound after last week’s severe selloff. Tencent Holdings fell 7.05% and NetEase declined 7.4%, both notching their biggest one-day percentage drop in more than a year. Bilibili gave up 4.9%. For Tencent, its valuation has been depressed in recent months amid concerns about a lack of new blockbuster games and higher expenses related to AI investments. However, Bernstein analysts still expect Tencent to outperform its gaming peers. The benchmark Hang Seng Index ended 0.95% lower at 24892.66; the Hang Seng Tech Index fell 3.0%. ([email protected])
0505 ET – Royal KPN’s downward revision to its full-year service revenue guidance represents a slight negative, ING’s David Vagman writes in a note. The Dutch telecommunications company now expects 2026 group service revenue growth of around 1.5% from between 2% and 2.5% previously. Additionally, KPN’s strategy regarding 20% of the Netherlands it doesn’t cover with fiber raises questions, he says. Shares are down 0.6% at 4.22 euros. ([email protected])
0451 ET – U.K. inflation is beginning to feel the effects of a global shortage of memory chips, driven by booming AI demand, ING’s James Smith says in a note. While headline inflation for June fell to a 15-month low, core inflation came in slightly above expectations. “It looks like ‘chipflation’ has washed up on U.K. shores; portable device prices spiked by 22% month-on-month, the biggest monthly change since the series began in 2015,” the economist says. Still, with food and services inflation cooling, the BOE doesn’t look likely to hike rates any time soon, he says. “We expect the Bank of England to hold rates throughout 2026 before looking to cut rates gradually from next spring.” ([email protected])
