KUALA LUMPUR (April 24): Malaysian technology stocks outperformed on Friday as investors globally cheered stronger-than-expected earnings at US chip giant Intel Corp.

Analysts said the renewed interest comes as Malaysian backend players are beginning to see a spillover from artificial intelligence (AI) related demand effect and as order visibility gets clearer after an extended downcycle over the past two years.

The current rally is reflected largely by structural AI-linked demand, which continues to drive chip requirements across data centres and everyday consumer applications, said Trident Analytics Sdn Bhd research analyst Peter Lim Tze Cheng.

“We are finally seeing growth driven by AI, billion-dollar investments from across the board in the past two years are finally trickling down to local players,” said Lim.

The Bursa Malaysia Technology Index, which tracks 52 stocks in the sector, surged 3% led by semiconductor and technology equipment companies. Automated test equipment maker ViTrox Corporation Bhd (KL:VITROX) was up 10% while Malaysian Pacific Industries Bhd (KL:MPI), which provides outsourced semiconductor assembly and test, climbed 5% to a 10-month high.

Intel Corp’s latest quarterly results, which exceeded market expectations, signalled heightened demand for chips linked to AI and sent its shares up nearly 19% in after-hours trading.

For Rakuten Trade head of equity sales Vincent Lau, the latest cycle would be more resilient compared to previous cycles, as AI demand is increasingly embedded across industries, making it less susceptible to sharp pullbacks.

The current upcycle is just the beginning for Malaysian firms that will see stronger earnings in the second half of 2026, he added.