KUALA LUMPUR (Jan 28): Mah Sing Group Bhd (KL:MAHSING), whose share price has been under selling pressure, labelled DeepSeek’s breakthrough in using lower-powered artificial intelligence (AI) chips as a promising development for its data centre venture, especially in the context of growing demand for high-performance computing.

As AI adoption continues to accelerate, the property developer said both high- and low-powered chips will contribute to a significant increase in the need for advanced data centre infrastructure.

Mah Sing, which has a joint venture with Bridge Data Centre, has seen its share price drop 23% since the start of 2025 to a seven-month low, reflecting broader market concerns on the global development of AI chips and data centres. As of 11.20am, the stock was trading at RM1.35, down three sen or 2.17%.

The concerns include the potential impact of recent US restrictions on AI chip exports and the emergence of Chinese open-source large language model (LLM) AI service provider DeepSeek.

Mah Sing noted that lands near energy hubs will become increasingly valuable.

“The Southville data centre (DC), with its immediate access to reliable and higher capacity energy, offers a competitive edge in accelerating market deployment for its DC partners,” said Mah Sing.

All 13 analysts tracking Mah Sing recommend a “buy” call on the stock, with a consensus target price of RM2.14, implying a potential upside of 59% from current levels.

CGS International, in a note on Monday, said that the recent negative share price reaction was "overblown". The research house believes Mah Sing’s earnings growth potential is undervalued, particularly from its existing property development segment.