JP Morgan Chase and Nomura successively cut valuations, Datacenter concept stocks continue to decline.
After the United States introduced export restrictions on artificial intelligence (AI) chips, Malaysian Datacenter concept stocks plummeted one after another, with the Put trend showing no signs of abating. Both JP Morgan Chase and Nomura Securities have downgraded industry ratings.
Nomura Securities reported that the proposed new regulations in the United States are unfavorable to the development of Datacenters in Malaysia, as Malaysia is classified as a 'Level 2 restricted' country, with a cap of 0.049 million H100 units, equivalent to less than 50 megawatts (MW) of AI information technology (IT) load capacity.
Although the restriction only targets advanced AI chips, not low-end chips, it is understood that most cloud computing deployments require advanced chips.
According to analysts, companies such as Microsoft, Amazon, and Google have launched large-scale AI datacenters in Malaysia and initiated the initial phase of construction.
Considering the country's advantages in land, electrical and hydraulic facilities, such as availability and low cost, Malaysia remains an ideal destination for VEU (UVEU) at a global level.
Nevertheless, UVEU may also decentralize its operations to countries like Thailand and Indonesia, reducing its capital expenditure plans in Malaysia.
Capital expenditure may decrease.
Nomura Securities believes that although UVEU will continue Malaysia's datacenter capital expenditure plan in the short term, it is not the case in the long term.
From the perspective of the new regulations in the USA, the government does not encourage companies to build AI infrastructure overseas, and has taken measures to address the midterm energy constraints in the USA. Future regulatory changes...