KUALA LUMPUR (Oct 27): Malaysia's technology stocks outperformed on Tuesday, catching the buzz over artificial intelligence (AI) firm Anthropic, which has officially filed for its listing.
Investors are also picking up the pieces after a recent global sell-off in the sector, which was sparked by rising US interest rates that hammered high-valuation stocks, as well as anxiety over massive spending on semiconductors and data centres needed to support AI.
“We believe Anthropic's IPO disclosures could provide a near-term catalyst for technology stocks, easing concerns over whether massive AI infrastructure investments can generate meaningful returns,” Tan Woon Pin, an analyst with Kenanga Investment Bank, told The Edge.
Anthropic's revenue growth, which significantly outpaced compute costs, coupled with improving operating leverage, reinforces the view that AI monetisation is gaining traction, potentially supporting a recovery in investor confidence and sector valuations, he noted.
The Bursa Malaysia Technology Index, which tracks over 50 stocks in the sector, rose over 2% and outpaced the benchmark FBM KLCI’s 0.3% gain.
ViTrox Corp Bhd (KL:VITROX), the largest firm in the sector by market capitalisation, climbed 3.5% to RM11.10 while Malaysian Pacific Industries Bhd (KL:MPI), which provides outsourced semiconductor assembly and test services, was up 1.5% to RM41.20.
ViTrox
Shares of ViTrox, in particular, have soared nearly 180% year to date and are now worth RM21 billion amid massive adoption of AI and advanced computing.
“We believe ViTrox’s outlook remains robust, signalled by sustained demand from incoming orders,” Maybank Investment Bank said on Tuesday and lifted its target price by 22% to RM12.80 after raising its earnings forecasts.
ViTrox mainly manufactures machines used to automatically inspect and detect defects in semiconductor components and printed circuit board assemblies.
Backlog at ViTrox remains only partly fulfilled even as its campuses are running at near full utilisation, the house said in maintaining its ‘buy’ call, noting that planned capacity expansion should progressively deliver on the accumulated orders over the coming quarters.
The Penang-based firm, which reported new record-high earnings in the June-end quarter, is building a new 500,000-square-feet facility at its hub in Batu Kawan which will more than triple its manufacturing space.