KUALA LUMPUR (Nov 20): Malaysian technology stocks rebounded from a seven-day losing streak, thanks to strong earnings of US chipmaker Nvidia Corp and potential delay in US semiconductor tariffs.

The Bursa Malaysia Technology Index, a gauge that tracks 49 stocks and heavily weighted towards semiconductor-related firms, snapped a seven-session losing streak on Thursday and rose nearly 2% to emerge as the best-performing sector on the local bourse.

“The results were a solid beat, but whether market participants approve will depend on the share price reaction” of Nvidia later during US trading hours, said Malacca Securities head of research Loui Low.

The current rebound reflects oversold conditions, suggesting scope for further upside in the coming week, he said. However, he cautioned that Malaysian tech stocks historically show stronger correlation to downside than upside in US markets.

Top gainers included Oppstar Bhd (KL:OPPSTAR) that advanced 7% as well as Unisem (M) Bhd (KL:UNISEM) and Pentamaster Corp Bhd (KL:PENTA) which added more than 4% each.

Software-related counters also rallied, with Techstore Bhd (KL:TECHSTORE) surging 15.3%, NexG Bhd (KL:NEXG) climbing 11.9%, and SNS Network Technology Bhd (KL:SNS) advancing 4.2%.

“Any positive developments on the tariff front, coupled with a rebound in US tech valuations, could drive Malaysian tech stocks in the short term,” said New Paradigm Securities head of research Ben Shane Lim.

“Keep in mind that we have not seen much negative impact” from the tariffs on electrical and electronic exports, he added.

In early Asian trading, Nvidia reported stellar third-quarter results alongside a robust fourth-quarter outlook, both exceeding analysts’ forecasts and easing fears of an artificial intelligence-driven (AI) bubble. Nvidia also guided sales of about US$65 billion (RM269.55 billion) in the next quarter, well above the US$61.66 billion consensus.

After-hours trading saw Nvidia shares rise 5.08%.

The upbeat results helped lift sentiment across Asian markets, with Taiwan leading gains at 3%, followed by Japan at 2.68% and South Korea at 1.9%. European markets also opened higher, while all three major US index futures traded in positive territory.

The rally also comes as investors learnt that US officials have privately signalled the long-touted semiconductor tariffs may not be implemented soon, partly to avoid provoking China.

The discussions reported by Reuters and not previously disclosed, mark a shift from earlier guidance that semiconductor tariffs of about 100% on imports would be rolled out imminently.