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.

1152 ET - Nvidia may report "another significant stair-step in backlog" in their second-quarter earnings call, driven by continued compute demand, UBS analysts write in a note. "Looking at compute through the lens of supply and demand, because the vast majority of hyperscaler capex increase this year is due mostly to memory price inflation, compute supply growth is even further from keeping pace with demand - this is ultimately bullish for NVDA," they write. Because broader debates about AI spending and credit risk are out of Nvidia's hands, investors are going to focus on the numbers--and likely come away with greater confidence about earnings growth through 2028. Nvidia trades down 0.2% at $224.81. (elias.schisgall@wsj.com)

1135 ET - Applied Materials' move to double systems-manufacturing capacity by 2028 was the key takeaway from the company's 3Q report and earnings call, UBS analysts write in a note. While the target isn't necessarily revenue guidance, they write, "we are hard-pressed to believe that AMAT would have excess supply in C2028 when it is getting 8-10Q visibility from major customers." The target, they write, is consistent with their model for around $14 billion in quarterly systems revenue exiting 2028, which would push earnings per share close to $30 with room for further upside. Still, the investments in capacity may be a headwind to gross margins, contributing to a guide that "left a bit to be desired," they write. Shares fall 4.6%. (elias.schisgall@wsj.com)

1107 ET - Equity markets got support this week from some better-than-expected economic data--but that wasn't the case for bitcoin. "Bitcoin did not move and remained range-bound within the band it has occupied for most of the past two months," says Colin Basco of Coinbase Institutional in a note. "When Treasuries offer competitive yields, the desks that normally supply crypto leverage and liquidity have less incentive to deploy capital into crypto cash-and-carry trades," he says, adding that this is why volumes in bitcoin trading are light. Bitcoin is down 1% to $62,708. (kirk.maltais@wsj.com)

1028 ET - Sandisk is improving margins and demand cyclicality thanks to the AI trade, JPMorgan analysts say, moving the stock to overweight from not rated. The memory provider is positioned to capitalize on AI as the total addressable market for NAND memory products is inflecting from around $70 billion in 2025 to more than $300 billion this calendar year. The analysts expect it to reach $500 billion next year. Data centers are driving that growth with demand from AI hyperscalers and cloud customers, the analysts say. Sandisk is also adjusting its business model to reduce demand cyclicality and bring its margin profile higher, they say. Shares are up 6%. (katherine.hamilton@wsj.com)

1013 ET - Sandisk is using a new operating model that is reducing volatility in demand, Chief Executive David Goeckeler tells CNBC. The company makes decisions about producing supply for memory customers 10 to 15 years in advance, Goeckeler says. But historically, it has negotiated pricing with customers on a quarterly basis, creating volatility across the year, as cycles in demand would ebb and flow. Now, Sandisk is asking customers for more visibility on a longer-term basis which Goeckeler says will reduce volatility. The new strategy comes as Sandisk is getting an influx of demand from AI developers. Shares are up 6%. (katherine.hamilton@wsj.com)

0558 ET - JD.com's earnings are likely to improve in 2H following 2Q's results beat, according to Citi analysts. The Chinese e-commerce company could post stronger retail profit as gross margins improve on better supply-chain efficiency, the analysts say in a research note. Its food-delivery business is also expected to continue narrowing losses, they add. Investment in Joybuy, the international online-shopping brand of JD.com, will likely be "higher but within disciplined and manageable spend," they write. Citi keeps a buy rating, citing an attractive valuation, earnings-growth recovery, solid execution and generous shareholder returns. The bank maintain a $39 target price on ADRs, which last closed at $29.30. (tracy.qu@wsj.com)

0441 ET - Tencent Music Entertainment's margin outlook remains resilient despite higher investment for recently acquired audio platform Ximalaya, says UOB Kay Hian's Julia Pan in a note. The platform adds scale and broadens Tencent Music's audio ecosystem. Contributions from Ximalaya should boost gross margins slightly, she says. However, she also flagged that the Chinese online-music company is likely to spend more on marketing for its new platform, which could drive up sales and operating expenses and slightly weigh on net profit margin for 2026. UOB KH raises its target price for Tencent Music to 53.00 Hong Kong dollars from HK$50.00 and retains a buy rating. Shares closed at HK$33.60. (megan.cheah@wsj.com)

0345 ET - Lenovo seems confident in managing the headwinds for consumer electronics, Citi analysts say in a research note. Management expects PC shipments to fall around 15% and smartphone shipments to decline around 20% in 2H, with commercial PCs showing more resilience than consumer, the analysts say. To offset the impact of declining unit sales, Lenovo will raise average selling prices, optimize premium product mix and focus on gaining market share, the analysts say, citing management. Citi maintains its buy call on Lenovo but raises its target price to 55.00 Hong Kong dollars from HK$31.00, after Lenovo says it expects to achieve its $100 billion annual revenue target this fiscal year, ahead of its earlier goal of hitting the milestone in two years. Shares are 3.0% lower at HK$33.86. (sherry.qin@wsj.com)

0125 ET - Wafer price hikes are contributing more to SMIC's improving gross margin than its product mix optimization, says SMIC co-CEO Zhao Haijun in a post-earnings call with analysts. SMIC's 2Q gross margin rose to 25.3%, topping its previous guidance. The chip foundry can adjust production capacity to supply products that are in high demand and at higher prices, Zhao says. "If logic demand is low, we could use the capacity for microcontroller units or specialty memory." Price hikes by SMIC are expected to gradually reflect in the company's earnings in the coming quarters, he says. Many wafers shipped in 2Q were priced when they were produced in 4Q or 1Q. Wafers produced and shipped in the current quarter will have higher prices, he adds. (sherry.qin@wsj.com)

0102 ET - AEM Holdings could secure new customers, which would bolster the semiconductor test company's growth, says Maybank Securities' Jarick Seet in a note. The company is in talks with new customers and its partnership with Taiwan-listed ASE could open it to more opportunities, the analyst says. AEM remains poised to expand its revenue streams, which could drive its profitability to new highs, he adds. The Singapore company also issued a 2026 earnings-per-share guidance of 24.5 Singapore cents-27.5 Singapore cents. Seet estimates this to be 20%-35% above Maybank's forecasts. He therefore raises his 2026-2027 earnings projections by 28.7%-17.8%. Maybank lifts its target price to 13.50 Singapore dollars from S$11.48. Shares drop 4.4% to S$10.50. (megan.cheah@wsj.com)

0034 ET - SanDisk expects revenue to grow at a mid-to-high teens annual rate through fiscal 2030, according to targets unveiled at its investor day this week. The memory-chip maker outlines an ambitious long-term financial plan, forecasting average gross margins of around 80% and operating margins near 75% between fiscal 2028 and 2030. Adjusted free-cash-flow margin is projected at roughly 50%, while capital spending is expected to remain at a mid-single-digit percentage of revenue. SanDisk says it plans to prioritize more reliable, high-volume business while focusing on strategic customers that value its products. (jie.yang@wsj.com)

2242 ET - Rising semiconductor costs are expected to force Chinese smartphone manufacturers to increase prices in 2H, which could weigh on consumer demand, says Counterpoint Research. Smartphone sales in China fell 8.6% on year in the first 30 weeks of 2026. The decline in sales post the 618 shopping festival widened to double digits due to price hikes and seasonal weakness, the research firm says. Despite the cost pressure, Huawei has maintained the lead with a weekly market share above 20% since 2Q, driven by strong demand for an entry-level model. In the 30th week, Xiaomi is at second place, while Apple has entered its typical seasonal slump before the introduction of the new iPhone series, it says.