AI-related counters on Bursa mixed on Trump's latest plan

KUALA LUMPUR: Industrial products and services counters on Bursa Malaysia related to the artificial intelligence (AI) chip making have shown a mixed reaction to the latest plan announced by the Trump administration to rescind and replace Biden-era global AI chip export curbs.

AI Brief

Nationgate's stock jumped amid expectations that Trump may ease Biden-era AI chip export curbs, boosting demand.
A potential US policy reversal could lift global semiconductor sentiment, helping companies like NVIDIA, AMD, and Nationgate.
Despite market uncertainty, Kenanga maintains Kelington as its top tech pick, advising caution for investors.

As at 10.51 am, Nationgate Holdings shares rose by 12 sen to RM1.61 sen with 44.67 million shares changing hands, while Kelington Group share price slipped 2.0 sen to RM3.40 with a sum of 123,900 shares transacted.

According to Reuters, the Trump administration plans to rescind and revise the Biden-era export restrictions on advanced AI chips, as a United States (US) Department of Commerce spokesperson confirmed on Wednesday.

The existing rule, aimed at curbing China's access to high-end AI computing power, divided the world into strategic tiers to preserve technological advantages for the US and its allies.

In a related development, Reuters also reported that President Trump is expected to announce a decision to ease AI chip export restrictions to select Gulf nations during his Middle East visit from May 13-16.

Although the policy reversal has not yet been finalised, Kenanga Investment Bank Bhd said the news flow is expected to buoy sentiment across the global semiconductor space, particularly among AI chipmakers such as NVIDIA and AMD.

The investment bank viewed that on the local front, this would be a near-term catalyst for Nationgate, whose share price has declined by 43 per cent since the AI diffusion restrictions were first introduced on Jan 10, 2025.

"Should the curbs be relaxed or revised, Nationgate stands to benefit from improved visibility and demand recovery in AI-related module assembly.

"In addition, we also do not rule out that there could be a possibility of government-to-government agreements under the upcoming revised AI diffusion rules," it said.

Maintaining a "neutral" call on the technology sector, Kenanga said Kelington Group remained its sole top pick, supported by robust earnings visibility driven by its strong order and tender books.

While keeping several "outperform" calls under its coverage, the bank said near-term uncertainties stemming from Trump's tariff threats and supply chain disruption have kept these stocks within a volatile trading range.

"As such, we recommend that aggressive investors adopt a more trading-oriented approach amid the prevailing uncertainties.

"Conversely, we advise conservative investors to continue monitoring sector developments and consider investing when greater clarity emerges," it said.

-- BERNAMA

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