Malaysian tech stocks hit 21-month high as AI, data centre bets extend rally

KUALA LUMPUR, 6 AUGUST 2026 —

Malaysian technology shares surged to their highest level in 21 months on Wednesday, with the Bursa Malaysia Technology Index closing at 66.01 points, up 3.12% on the day and 26.1% over the past month.

Analysts at Hong Leong Investment Bank (HLIB) attributed the rally to better-than-expected quarterly earnings from major US hyperscalers, which reinforced expectations that AI-related capital spending is still expanding. They also pointed to recent price increases by leading global analogue chipmakers, which could improve margins for Malaysian OSAT players such as Unisem (M) Bhd and MPI from the second quarter of 2026.

HLIB noted in an April 21 research note that the broad-based nature of the chip-price increases suggests suppliers are attempting to pass on higher costs driven by AI demand, tighter capacity and supply-chain adjustments.

“This could make it easier for Malaysian semiconductor companies to raise their own prices from mid-2026,” the bank said.

BIMB Securities highlighted rising memory prices, including RAM, as evidence of the need for more powerful computing systems. With Malaysia’s data-centre build-out still in its early stages, the brokerage said related infrastructure—server imports, fibre connectivity, utilities and industrial services—could provide a second-order boost.

“Telekom Malaysia Bhd and Time dotCom Bhd are well-positioned to benefit as more hyperscalers expand locally,” BIMB said in a May 4 note.

Sentiment has also been lifted by reports that Apple Inc, Intel Corp and Samsung are exploring ways to diversify chip production away from traditional geographies, according to BIMB.

The pipeline of new listings is adding to optimism. Chip designer SkyeChip Bhd plans to raise up to RM352 million in an initial public offering to expand capacity, a move BIMB said could further stimulate domestic technology demand.

“Overall, the outlook remains cautiously optimistic, supported by a stronger ringgit and Malaysia’s emergence as a regional hub for data centres and AI,” BIMB said.

AskEdge data shows valuations have climbed accordingly. Frontken Corp Bhd leads on price-to-earnings at 48.9 times, followed by MPI at 38.6 times and Inari Amertron Bhd at 37.5 times. AskEdge noted, however, that these companies serve different segments within the semiconductor industry.

External risks remain. BIMB cautioned that ongoing geopolitical tensions between the US and Iran—despite reports of potential ceasefire talks—could yet weigh on investor confidence.

Related: Telekom Malaysia · Bursa Malaysia