Neo Ser Siong
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Strong demand for AI boosts valuations, and technology stocks advance the upward cycle
(KUALA LUMPUR, 5th) As demand for artificial intelligence continues to rise, and we are currently in a recovery cycle, the market anticipates that this will drive the technology sector to strengthen, and at the same time call for the purchase of Innerley Meichang ( $INARI.MY$) and Pacific Malaysia ( $MPI.MY$)。
CIMB analysts pointed out that since the technology sector has begun a new upward cycle, it is necessary to re-estimate the valuations of major companies and raise the ratings from the original “neutral” to “increase holdings.”
Analysts said that the current capacity utilization rate in the technology sector will rise further, and this phenomenon is expected to begin in the second half of this year.
Looking back at the first quarter of this year, the performance of the Malaysian Technology Index was mediocre, which was inferior to the Malaysian FTSE Composite Index; however, as the performance of major technology companies improved and was quite optimistic about the outlook, the technology index rebounded, surpassing the Composite Index, which is 15% higher between May and June.
Overall, analysts prefer outsourced semiconductor assembly and testing (OSAT) vendors, with Innerley Macon and Pacific Malaysia being preferred.
Technology stocks are welcoming the dawn
On the other hand, Kennag Investment Bank research analysts also pointed out that in fact, the technology sector has all begun to reveal different information. Among them, the World Semiconductor Trade Statistics Organization (WSTS) recently predicted global semiconductor sales for 2024, from the original 13...
(KUALA LUMPUR, 5th) As demand for artificial intelligence continues to rise, and we are currently in a recovery cycle, the market anticipates that this will drive the technology sector to strengthen, and at the same time call for the purchase of Innerley Meichang ( $INARI.MY$) and Pacific Malaysia ( $MPI.MY$)。
CIMB analysts pointed out that since the technology sector has begun a new upward cycle, it is necessary to re-estimate the valuations of major companies and raise the ratings from the original “neutral” to “increase holdings.”
Analysts said that the current capacity utilization rate in the technology sector will rise further, and this phenomenon is expected to begin in the second half of this year.
Looking back at the first quarter of this year, the performance of the Malaysian Technology Index was mediocre, which was inferior to the Malaysian FTSE Composite Index; however, as the performance of major technology companies improved and was quite optimistic about the outlook, the technology index rebounded, surpassing the Composite Index, which is 15% higher between May and June.
Overall, analysts prefer outsourced semiconductor assembly and testing (OSAT) vendors, with Innerley Macon and Pacific Malaysia being preferred.
Technology stocks are welcoming the dawn
On the other hand, Kennag Investment Bank research analysts also pointed out that in fact, the technology sector has all begun to reveal different information. Among them, the World Semiconductor Trade Statistics Organization (WSTS) recently predicted global semiconductor sales for 2024, from the original 13...
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