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.

0330 GMT - TSMC's planned $100 billion investment in the U.S. is likely driven by geopolitical concerns rather than financial returns, Morningstar analyst Phelix Lee says in a research note. TSMC has previously said that construction and manufacturing are both more expensive in the U.S. and its preference to keep research & design and manufacturing in Taiwan. TSMC will likely have to convince customers to pay more for the new fabs to maintain corporate-wide profitability given likely lower levels of U.S. government support, he says. The latest investment brings TSMC's cumulative investment budget in the U.S. to $165 billion and should extend TSMC's investment roadmap to around 2040. Shares are last at NT$1,025.00. (sherry.qin@wsj.com)

0320 GMT - Frencken Group's appears to have a positive outlook, primarily due to its key semiconductor segment, say CGS International analyst William Tng in a note. The segment drove the integrated technology solutions company's 2024 revenue growth, on improving demand from its key customers, Tng writes. Management expects higher 1H 2025 revenue from the segment, Tng notes. The company is also considering enhancing and expanding its production resources in Singapore, signaling its confidence in the long-term business prospects with its customers and continued development of the country's semiconductor industry. CGS International raises the stock's target price to S$1.40 from S$1.38, while reiterating an add rating. Shares are at S$1.06.(amanda.lee@wsj.com)

0122 GMT - CIMB Securities adopts a more cautious near-term outlook on Malaysia's equity market amid escalating global trade tensions, which could slow global growth and weaken corporate earnings visibility. However, domestic liquidity, record-high approved investments and structural reforms may offer support, analysts Ivy Ng Lee Fang and Lim Yue Jia say in a note. Following weaker-than-expected 4Q 2024 earnings, they downgrade the rubber gloves and tech sectors to neutral from overweight. They also lower the KLCI's end-2025 target to 1657 from 1766, citing large foreign fund outflows. CIMB top picks include CelcomDigi, Gamuda, Hong Leong Bank, Tenaga Nasional, SD Guthrie, IHH Healthcare and RHB Bank. The KLCI is up 0.7% at 1566.76. (yingxian.wong@wsj.com)

0013 GMT - South Korea's steel, cars and electronics industries among will be impacted by higher U.S. tariffs, Moody's Analytics associate economist Danny Kim says. The U.S. is set to impose separate 25% tariffs on steel and aluminium imports later this month, with South Korea being the fourth-largest steel exporter to the U.S., Kim says. Tit-for-tat tariff increases between the U.S. and its trading partners will weaken global demand, he notes. Given that cars and electronics account for a significant portion of South Korea's trade surpluses with the U.S., those manufacturers can be potential U.S. targets for tariffs, he adds. (kwanwoo.jun@wsj.com)

2244 GMT - Disney is focused on creating long-term growth around its Disney+ streaming service, seeking to increase the platform's number of subscribers, profitability and margins, Disney Entertainment Co-Chairman Dana Walden says at the Morgan Stanley Technology, Media & Telecom Conference. One way the entertainment giant will look to achieve these goals is by putting more focus on international content. Disney is working to develop original shows specific to local and regional markets internationally, which Walden says will add more value to its tentpole global offerings. (connor.hart@wsj.com)

2335 GMT - Pexa's bull at Macquarie stays positive on the real-estate settlement provider despite its acknowledgement that engagement with U.K. lenders has been slower than expected. The Australian company's operational progress in the U.K. is among the supporting factors in the stock's continued outperform rating, with interest from so-called tier-two and tier-three lenders seen as good. The investment bank's analysts are less positive on Pexa's progress with tier-one lenders. However, first-half group revenue was in line with expectations at Macquarie, where higher margins and improved cash flow are also seen positively. Macquarie raises its target price 0.5% to A$14.72. Shares are down 1.3% at A$11.58. (stuart.condie@wsj.com)

1719 GMT - Homebuilders may have no choice but to pass higher costs on to consumers, Realtor.com says, due to the new round of tariffs. "Rising costs due to tariffs on imports will leave builders with few options," says Realtor.com Chief Economist Danielle Hale. "They can choose to pass higher costs along to consumers...or try to use less of these materials, which will mean smaller homes."She noted that while the homebuilding industry and new construction homes will bear the initial brunt of tariffs, they will likely change the landscape of the housing market by changing opportunity costs. The premium on new construction homes that had been shrinking in many markets could begin to rise again. Buyers also may get a lower appetite for major remodeling projects. (chris.wack@wsj.com)

1532 GMT - The progress in AI hasn't kept up with the telecommunications industry's ambition, Etisalat UAE Chief Executive Officer Masood M. Sharif Mahmood says at the Mobile World Congress in Barcelona. "The ambition was high but the progress didn't match those ambitions," Mahmood says. Flexibility is needed to leverage the power of AI, he adds. "We see AI as an enabler and transformer of our business [as a telecommunication company]. AI has the potential to modernize the way we work as an organization." (najat.kantouar@wsj.com)

1516 GMT - Artificial intelligence is critical for telcos to survive and thrive, the World Economic Forum's Bart Valkhof says at the Mobile World Congress in Barcelona. "Telcos are ahead of the AI curve, both when it comes to the spend based on revenue, and in terms of growth of spend," Valkhof, who is the WEF's head of information and communication technology industry, adds. However, the implementation is mostly experimental and not really done at scale yet, he notes. Additionally, operations have become more complex and vulnerabilities are happening. Therefore, Telcos need ambition and vision to scale AI in their operations, he says. (najat.kantouar@wsj.com)

1214 GMT - Hybrid artificial intelligence, which merges public AI like ChatGPT and Deepseek with companies' internal private AI, defines our era, Lenovo Chief Executive Yang Yuanqing says at the Mobile World Congress in Barcelona, Spain. "We believe in the power of convergence bringing together AI models, data and computing power. This will drive stronger ecosystem connectivity," he says. However, customers need AI solutions that best fit their needs in terms of effectiveness and efficiency, he says. To cope with the demand, private AI and public AI need to complement one another for better outcomes, he says. (najat.kantouar@wsj.com)

0951 GMT - European telecommunication groups have an opportunity to invest in data centers as artificial-intelligence companies need more and more power-hungry infrastructure to roll out the technology, Mistral AI Chief Executive Arthur Mensch says at the Mobile World Congress in Barcelona. "We would welcome more domestic efforts to create data centers," he says. Mistral AI is already building its own data centers in France, but Mensch says Europe has a lot to offer when it comes to energy, and telecommunication groups should take advantage of that to scale up investments. (mauro.orru@wsj.com)

0939 GMT - French artificial-intelligence startup Mistral AI is partnering with telecommunication companies to help them better interact with customers and install infrastructure, Chief Executive Arthur Mensch says at the Mobile World Congress in Barcelona. Mistral AI is already working with Orange and Three to help them improve productivity and reduce costs, Mensch notes. He adds Mistral AI is willing to consider partnerships with telecommunication groups to build out data centers in Europe. (mauro.orru@wsj.com )

(END) Dow Jones Newswires

March 05, 2025 04:20 ET (09:20 GMT)

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