Asian stocks plummet again, but Malaysian stocks are doing well on their own
As semiconductor manufacturers like Nvidia decline, concerns about the overvaluation of artificial intelligence (AI) have resurfaced, leading to a significant drop in Asian semiconductor stocks. However, market insiders believe that local technology stocks are minimally affected.
IFast research analyst Xu Kaisheng told Nanyang Siang Pau in an interview that in most cases in our country, technology stocks are not directly related to the AI theme.
"Therefore, there is not much impact on our country's technology stocks, or it is very small."
He added that looking back at the first half of the year, the local performance of utilities, construction, and industrial stocks was relatively good.
Looking back, under the wave of artificial intelligence, global demand for new data centers has grown strongly, thereby boosting the aforementioned sectors related to infrastructure.
Still observing local technology stocks.
He suggested that investors can currently choose to observe off-market, as local technology is still relatively sluggish.
He stated that in the just-ended earnings season, companies like $INARI (0166.MY)$ such as tech stocks generally did not perform well.
IFast research analyst Xu Kaisheng told Nanyang Siang Pau in an interview that in most cases in our country, technology stocks are not directly related to the AI theme.
"Therefore, there is not much impact on our country's technology stocks, or it is very small."
He added that looking back at the first half of the year, the local performance of utilities, construction, and industrial stocks was relatively good.
Looking back, under the wave of artificial intelligence, global demand for new data centers has grown strongly, thereby boosting the aforementioned sectors related to infrastructure.
Still observing local technology stocks.
He suggested that investors can currently choose to observe off-market, as local technology is still relatively sluggish.
He stated that in the just-ended earnings season, companies like $INARI (0166.MY)$ such as tech stocks generally did not perform well.
Although foreign funds have been continuously inflowing over the past two weeks, he mentioned that due to the relatively small size of local technology stocks compared to the index components, this makes tech stocks less attractive, and he expects the trend in September to continue under pressure.
Areca Capital's CEO, Huang Deming, analyzed that in the second quarter, tech stocks, especially semiconductor-related stocks, generally lagged behind the broader market, blaming the delayed recovery of the semiconductor sector compared to expectations.
Orders have not recovered.
"The main reason is that the supply chain is a bit delayed, and customers may have already placed orders, but because more local technology stocks are engaged in the backend, the order flow has not returned yet."
However, he added that if there is a recovery in profits in the third and fourth quarters, it will help improve the subsequent performance.
Therefore, he believes that investors can pay attention to some companies with strong fundamentals and take advantage of the low absorption.
AI stocks being slaughtered on valuation?
The latest concerns about global artificial intelligence actually stem from some analyst comments, with some believing that the valuation of AI-related stocks has far exceeded the level of profitability of this technology.
The attention-grabbing US manufacturing PMI index falling below expectations has raised concerns about the US economy, further exacerbating risk aversion.
Randy, the global head of Taiwan research at UBS Asset Management, said in an interview with Bloomberg TV that investors are now starting to question whether investment returns can be realized because some macro data are not that strong, making the market a bit nervous.
On the contrary, some people are optimistic about the future of AI, and many companies around the world still plan to invest billions of dollars in adopting new technologies.
Fibonacci Asset Management's Global CEO, Zheng Renyun, believes that concerns about the peak demand for AI have been exaggerated.
We are likely to see strong demand for artificial intelligence and the infrastructure that supports it in the first half of next year.
In Asia, valuation is not considered a big issue, as AI stocks have lagged behind some global tech giants.
According to Bloomberg's data on Asian chip manufacturers, these stocks have a forward P/E ratio of 13, lower than the earlier 18, and well below the nearly 24 times of their major US-listed peers.
The stock market will experience significant volatility in September.
Asian stocks tumbled on Wednesday, with Taiwan, Japan, and South Korea leading the decline in major indexes, following the worst performance since August 5th in overnight US stocks.
Nvidia's overnight decline in US chip stocks, coupled with weak US manufacturing data and falling oil prices, has intensified concerns about the global economy.
$Nikkei 225 (.N225.JP)$ A drop of 4.2%, marking the largest decline in the past month; Both the South Korea and Taiwan stock markets saw significant declines, with the Taiwan weighted index plunging by 4.5%, and Taiwan Semiconductor declining in sync.
The latest concerns about global artificial intelligence actually stem from some analyst comments, with some believing that the valuation of AI-related stocks has far exceeded the level of profitability of this technology.
The attention-grabbing US manufacturing PMI index falling below expectations has raised concerns about the US economy, further exacerbating risk aversion.
Randy, the global head of Taiwan research at UBS Asset Management, said in an interview with Bloomberg TV that investors are now starting to question whether investment returns can be realized because some macro data are not that strong, making the market a bit nervous.
On the contrary, some people are optimistic about the future of AI, and many companies around the world still plan to invest billions of dollars in adopting new technologies.
Fibonacci Asset Management's Global CEO, Zheng Renyun, believes that concerns about the peak demand for AI have been exaggerated.
We are likely to see strong demand for artificial intelligence and the infrastructure that supports it in the first half of next year.
In Asia, valuation is not considered a big issue, as AI stocks have lagged behind some global tech giants.
According to Bloomberg's data on Asian chip manufacturers, these stocks have a forward P/E ratio of 13, lower than the earlier 18, and well below the nearly 24 times of their major US-listed peers.
The stock market will experience significant volatility in September.
Asian stocks tumbled on Wednesday, with Taiwan, Japan, and South Korea leading the decline in major indexes, following the worst performance since August 5th in overnight US stocks.
Nvidia's overnight decline in US chip stocks, coupled with weak US manufacturing data and falling oil prices, has intensified concerns about the global economy.
$Nikkei 225 (.N225.JP)$ A drop of 4.2%, marking the largest decline in the past month; Both the South Korea and Taiwan stock markets saw significant declines, with the Taiwan weighted index plunging by 4.5%, and Taiwan Semiconductor declining in sync.
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ Although following the broader market's decline, the decrease was relatively slight, closing at 1670.24, down 6.41 points or 0.38%.
Xu Kaisheng believes that this general decline is just a one-time external factor and will not mark the beginning of a declining cycle.
In a global context, $NVIDIA (NVDA.US)$ the leading decline in the US stock market was mainly due to high stock valuations, so this can be considered a healthy correction.
He further pointed out that as Malaysia's previous rise was not as strong as other Asian stock markets, and the composite index's rise was mainly led by stable financial stocks, the current decline is relatively mild.
However, based on the historical stock market trends in September, he expects greater volatility in the stock market this month.
The market is particularly focused on this month's Federal Reserve meeting, and if the results do not meet expectations, there may be greater volatility.
In addition to the Federal Reserve, Huang Deming also pointed out that the US presidential election is also receiving attention, therefore, it is expected that the impact of investment sentiment will continue, and the trend in the next 1-2 months will fluctuate.
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【Interviewer】Yang Huiping
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Source: Nanyang Siang Pau
Disclaimer: This content is for reference and educational purposes only, and does not constitute any specific investment, investment strategy, or recommendation. Readers should bear any risks and liabilities resulting from relying on this content. Before making any investment decisions, be sure to conduct your own independent research and evaluation, and consult with professional advice when necessary. The author and related participants are not responsible for any losses or damages caused by the use or reliance on the information contained in this article.
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