Tech, Media & Telecom Roundup: Market Talk

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.

0811 GMT – Shares of European semiconductor companies are sharply lower following another selloff in tech stocks in Asia. Bouts of volatility have plagued chip stocks in recent weeks as some investors worry that valuations and AI spending might be too high. Shares of Taiwan Semiconductor Manufacturing Co. closed 7.3% lower, while chip-making equipment manufacturer Tokyo Electron shed 8.2%. In Europe, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are down 4.1% and 5.1%, respectively. German chip maker Infineon Technologies is down 5%. STMicroelectronics shares are down 6.4%. ([email protected])

0655 GMT – Taiwan Semiconductor Manufacturing Co.’s increased capital expenditure guidance likely unsettled investors and led to a tech selloff, says Swissquote Bank’s Ipek Ozkardeskaya in commentary. TSMC’s record profit in 2Q failed to boost its shares, suggesting chip makers’ valuations have run ahead of themselves, she says. Investors are likely growing uncomfortable with the massive artificial-intelligence buildout due to overcapacity risks, but technology companies are continuing to spend, she adds. Major U.S. tech names are reporting their earnings next week, which could potentially turn the souring mood around. However, indication that companies like Alphabet are doubling down on infrastructure spending could further weigh on shares, she adds. ([email protected])

0644 GMT – The release of Kimi K3 helps Moonshot AI leapfrog Z.ai as the leading AI lab in China, for now, Bernstein analysts say. K3 is a “home run” that represents another instance in which China’s top AI labs keeping pace with the U.S. frontier has surprised global investors, Robin Zhu and others say. K3 is 40% cheaper than Anthropic’s Opus 4.8 and 70% cheaper than Fable. At a high level, K3 feels confirmatory of Bernstein’s view that Chinese AI can keep pace with global state-of-the-art labs, and take some share over time. “Looking ahead, it wouldn’t surprise us if K3 kicks Anthropic’s regulatory-capture-as-a-strategy campaign into overdrive.” At home, the onus will now be on Z.ai to bring its own trillion-parameter model to market. ([email protected])