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.

0819 GMT - SAP's slower-than-expected rollout of agentic AI is limiting monetization opportunities and removing a potential catalyst to boost the stock, UBS analysts write in a note to clients. They downgrade their rating on the German business-software group's stock to neutral from buy. "The lack of progress in delivering its own AI innovation into customers' hands is disappointing," the analysts say. While earnings growth should remain healthy through 2028, they say a deceleration in SAP's cloud backlog growth in the second half of 2026 is highly likely and would hold back the stock. SAP shares trade 3.8% lower at 178.36 euros. (mauro.orru@wsj.com)

0510 GMT - China's AI-related stocks remain expensive after the correction staged in July, HSBC analysts say in a research note. The correction in the AI segment, especially hardware, suggests the AI trade was overdone, they say. This upcycle was accompanied by high valuations and positioning amid high expectations, they say. Technology, media, and telecom positions exceeded 60% of active mutual funds by 2Q, HSBC says."After the correction in July, valuations remain expensive, and further upside likely only from other AI applications and monetisation scenarios beyond AI coding," HSBC says. (tracy.qu@wsj.com)

0452 GMT - China's non-AI equities are likely to need stronger policy support to outperform, HSBC analysts say in a research note.In July, key economic indicators missed both consensus and HSBC's estimates across the board, including weak retail sales, decelerating industrial production, and further declining fixed asset investment, they note. Both consumer discretionary and staples companies are likely to post double-digit on-year earnings decline in 1H, they say. A large-scale policy push to boost domestic demand is therefore needed to improve non-AI segment performance, HSBC says. (tracy.qu@wsj.com)

0424 GMT - Recruit Holdings is likely an artificial-intelligence-driven growth play, SMBC Nikko Securities' Eiji Maeda says in a research report. Its core strategy uses data, technology and automation to connect job seekers and companies, with AI expected to quicken the realization of this strategy, the analyst says. Longer-term growth potential in the Japanese company's human resources technology segment is expected to exceed already-high expectations. The brokerage raises the stock's target price to 19,600 yen from Y14,500 with an unchanged outperform rating. Shares are 1.9% higher at Y16,925. (ronnie.harui@wsj.com)

0406 GMT - With AI and advanced-chip demand driving global expansion, TSMC is accelerating its renewable-energy transition, according to its latest sustainability report. The chip maker's electricity consumption reached 28.77 billion kilowatt-hours in 2025, up 12.6% from a year earlier, equivalent to roughly one-tenth of Taiwan's annual power consumption. TSMC aims for renewable energy to account for 60% of electricity use across its global operations by 2030, compared with 20.1% in 2025. The company has also set a goal of using 100% renewable energy by 2040 and achieving net-zero emissions by 2050. (jie.yang@wsj.com)

0311 GMT - The upside for PDD Holdings will depend on the Temu bargain-shopping app's business performance, according to Morningstar's Chelsey Tam. The analyst notes that Temu is navigating increased governance and compliance costs. Second-quarter results from Temu's Chinese owner also suggest that the overseas business is slowing faster than expected. "The market is concerned about lackluster growth at Pinduoduo and the geopolitical risks Temu faces," Tam says in a note. With domestic platform Pinduoduo likely having reached a mature stage, "we think Temu's eventual turnaround can offer long-term upside," the analyst adds. Shares are also undervalued, she notes. Morningstar maintains its $141 fair-value estimate on PDD's ADRs, which last closed at $87.75. (tracy.qu@wsj.com)

0249 GMT - OpenAI could turn profitable as early as 3Q, marking a shift toward AI labs funding growth through their own operations rather than relying on venture capital, according to SemiAnalysis founder Dylan Patel. Speaking on the Dwarkesh Podcast, Patel says Anthropic became profitable in 2Q and OpenAI could follow in 3Q, helped by rising demand for products such as Codex and newer AI models. He adds that the growing profitability allows companies including OpenAI and Anthropic to fund an increasing share of their expansion through revenue, even as they continue raising capital to accelerate growth and reinvest profits into training. (jie.yang@wsj.com)

0142 GMT - WiseTech's annual result was stronger than UBS analysts had anticipated, at least relative to their preferred metric. While the logistics-software developer's fiscal 2026 revenue and Ebitda were slightly lower than analysts Lucy Huang and Ailsa Lei had forecast, the pair points out that reported Ebitda minus capital expenditure came to US$405 million. This metric, which can be seen as the cash-generating capacity of a software business, was up from US$232 million a year earlier and beat UBS's forecast by more than 10%. The analysts see lower-than-expected research and development capex as the driver of the beat. UBS has a last-published buy rating on the stock and a target price of 65.00 Australian dollars. Shares are down 7.9% at A$41.89. (stuart.condie@wsj.com)

0046 GMT - Memory prices are set to absorb an even larger share of cloud providers' AI infrastructure budgets in 2027, with DRAM and NAND flash projected to account for 68% of total capital expenditure, up from 47% in 2026, according to research firm TrendForce. Server DRAM prices are expected to rise about 270% in 2026, while prices for enterprise storage products could jump 235%, extending gains that began in the second half of 2025. TrendForce says higher memory costs, particularly for high-bandwidth memory, could lead AI chip and server vendors to raise prices further, prompting cloud providers to either spend more or optimize system memory configurations to control costs. (jie.yang@wsj.com)

0039 GMT - WiseTech Global's bull at RBC thinks the logistics-software provider's fiscal 2027 guidance suggests that operating costs will be lower than analysts expect. Analyst Jackson Lee sounds unimpressed by WiseTech's fiscal 2026 performance, pointing to soft revenue growth at its core CargoWise business. However, he is more positive on what he says is strong cost control. Lee tells clients in a note that this drove a 7% underlying earnings beat relative to consensus. With the midpoint of WiseTech's revenue guidance falling about 3% short of expectations, Lee reckons that the company expects operating-cost growth of no more than 1%. Consensus had been for an 8% rise, he adds. RBC has a last-published outperform rating on the stock and a target price of 64.00 Australian dollars. Shares are down 7.8% at A$41.98. (stuart.condie@wsj.com)

0024 GMT - WiseTech's bull at Citi isn't sure how the infrastructure-software provider's annual earnings compare with market expectations given the presence of significant restructuring costs. The Australian company reported FY 2026 underlying Ebitda of $644.5 million, with all restructuring costs removed. Citi analyst Siraj Ahmed tells clients in a note that this is a headline beat relative to consensus of about $600 million, but that it isn't clear whether all analysts had completely removed these costs from their forecasts. Ahmed wants more information on the second-half acceleration in WiseTech's CargoWise product implied by the company's FY 2027 guidance. Citi has a last-published buy rating on the stock and a target price of 55.05 Australian dollars. Shares are up 0.4% at A$42.485. (stuart.condie@wsj.com)

2221 GMT - Intuit lost do-it-yourself customers for its TurboTax business to lower-cost rivals in the latest fiscal year, CEO Sasan Goodarzi says, amid changes in the market for tax-filing software. Historically, the company's DIY model optimized TurboTax revenue through raising prices and upgrading customers into higher-value offerings over time, he says. "That model worked for many years, but the market has changed," he says, noting consumers now have more low cost alternatives. "Price is now the number one reason customers leave TurboTax." Goodarzi says the company now knows what needs to change, and is working to grow its share of total IRS filers.