TSLA
Tesla
-- 421.060 PLTR
Palantir
-- 80.550 NVDA
NVIDIA
-- 134.700 AMD
Advanced Micro Devices
-- 119.210 OXY
Occidental Petroleum
-- 47.130 
The demand for artificial intelligence is driving the technology sector.
Strong demand for AI drives valuation and boosts technology stocks in the rising cycle.
(Kuala Lumpur News, 5th) With the increasing demand for artificial intelligence and the current recovery cycle, the market predicts that this will drive the strength of the technology sector, and at the same time call for the purchase of Yinani Meichang ( $INARI (0166.MY)$) and Matai Pacific ( $MPI (3867.MY)$).
Lianchang International Investment Banking Analyst pointed out that since the technology sector has entered a new upward cycle, it is necessary to re-calculate the valuations of major companies and raise the rating from the original "neutral" to "buy".
Analysts said that the capacity utilization rate of the technology sector will further increase, and this phenomenon is expected to begin in the second half of this year.
Looking back at the performance of the Malaysian technology index in the first quarter of this year, it was mediocre compared to the FTSE Bursa Malaysia KLCI index; however, with the improved performance of major technology companies and optimistic prospects, the technology index rebounded and outperformed the composite index, with a 15% increase between May and June.
Overall, analysts prefer outsourced semiconductor assembly and testing (OSAT) suppliers, with Inari Amertron and Malayan Pacific being the top choices.
Technology stocks are seeing the dawn.
On the other hand, analysts at Kenanga Investment Bank also pointed out that the technology sector is revealing different information, including the recent World Semiconductor Trade Statistics organization (WSTS) raising its forecast for global semiconductor sales in 2024 from the original 13.1% to 16%.
This is mainly due to the strong demand for memory and logic integrated circuits, and semiconductor sales have shown year-on-year growth for six consecutive months.
Analysts state that for back-end technology companies, it is expected that orders will increase in the coming quarters, which is consistent with the investment bank's view of a recovery in the second half of 2024.
In the field of semiconductor packaging and testing, analysts continue to be bullish on Inari Amertron, mainly because in the short term, the upcoming launch of American smart phones with AI functionality will help drive the company's stock price.
Analysts also point out that since the purchase of smartphones during the pandemic, we have entered a replacement cycle, so strong sales are expected.
It is understood that the company currently plans to use existing strategies, as well as to establish joint ventures in China, in order to reduce the risk of over-concentration of customers, and the Chinese smartphone market also has huge potential.
Analysts are also bullish on Mat Pacific and Ke Yi Group ( $KGB (0151.MY)$), mainly because the capacity utilization rate is expected to continue to rise, while also gaining more contracts.
Challenges remain for automotive semiconductors.
As for the automotive semiconductor field, analysts state that although the worst is over, they still need to face the issue of customer inventory adjustments.
In addition, due to the development of electric vehicle charging stations not meeting expectations, the market will continue to be weak, which will be one of the main challenges.
(Kuala Lumpur News, 5th) With the increasing demand for artificial intelligence and the current recovery cycle, the market predicts that this will drive the strength of the technology sector, and at the same time call for the purchase of Yinani Meichang ( $INARI (0166.MY)$) and Matai Pacific ( $MPI (3867.MY)$).
Lianchang International Investment Banking Analyst pointed out that since the technology sector has entered a new upward cycle, it is necessary to re-calculate the valuations of major companies and raise the rating from the original "neutral" to "buy".
Analysts said that the capacity utilization rate of the technology sector will further increase, and this phenomenon is expected to begin in the second half of this year.
Looking back at the performance of the Malaysian technology index in the first quarter of this year, it was mediocre compared to the FTSE Bursa Malaysia KLCI index; however, with the improved performance of major technology companies and optimistic prospects, the technology index rebounded and outperformed the composite index, with a 15% increase between May and June.
Overall, analysts prefer outsourced semiconductor assembly and testing (OSAT) suppliers, with Inari Amertron and Malayan Pacific being the top choices.
Technology stocks are seeing the dawn.
On the other hand, analysts at Kenanga Investment Bank also pointed out that the technology sector is revealing different information, including the recent World Semiconductor Trade Statistics organization (WSTS) raising its forecast for global semiconductor sales in 2024 from the original 13.1% to 16%.
This is mainly due to the strong demand for memory and logic integrated circuits, and semiconductor sales have shown year-on-year growth for six consecutive months.
Analysts state that for back-end technology companies, it is expected that orders will increase in the coming quarters, which is consistent with the investment bank's view of a recovery in the second half of 2024.
In the field of semiconductor packaging and testing, analysts continue to be bullish on Inari Amertron, mainly because in the short term, the upcoming launch of American smart phones with AI functionality will help drive the company's stock price.
Analysts also point out that since the purchase of smartphones during the pandemic, we have entered a replacement cycle, so strong sales are expected.
It is understood that the company currently plans to use existing strategies, as well as to establish joint ventures in China, in order to reduce the risk of over-concentration of customers, and the Chinese smartphone market also has huge potential.
Analysts are also bullish on Mat Pacific and Ke Yi Group ( $KGB (0151.MY)$), mainly because the capacity utilization rate is expected to continue to rise, while also gaining more contracts.
Challenges remain for automotive semiconductors.
As for the automotive semiconductor field, analysts state that although the worst is over, they still need to face the issue of customer inventory adjustments.
In addition, due to the development of electric vehicle charging stations not meeting expectations, the market will continue to be weak, which will be one of the main challenges.
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Technology investment banking, let's compare!
$DBS (D05.SG)$[Follow the market] TP 3.60
$GHLSYS (0021.MY)$[Increase holding] TP 1.10
$INARI (0166.MY)$[Outperform the market] TP 4.60
$JHM (0127.MY)$[Follow the market] TP 0.60
$KGB (0151.MY)$[Outperform the market] TP 4.10
$KESM (9334.MY)$[Follow the market] TP 7.00
$LGMS (0249.MY)$[Outperform the market] TP 1.90
$MPI (3867.MY)$[Outperform the market] TP 46.80
$NATGATE (0270.MY)$【Outperforming the market】TP 2.10
$OPPSTAR (0275.MY)$【Outperforming the market】TP 1.70
$PIE (7095.MY)$【Outperforming the market】TP 6.80
$SKPRES (7155.MY)$【Outperforming the market】TP 1.40
$UNISEM (5005.MY)$【Following the market】TP 3.70
※ The TP in the above table refers to the target price in MYR (source: Kenang Research)
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104789406 : $DBS Group Holdings(D05.SG)$[Follow the market] TP 3.60
