Kenanga Investment Bank has signaled that this is the best time to buy Malaysian technology stocks after assessing the increase in global semiconductor sales and the limited impact of US tariffs.
The research firm expects the chip sales growth cycle to continue at least until mid-2026 with equipment spending also increasing.
Strong demand for artificial intelligence (AI), high-performance computing, 5G networks and next-generation smartphones are the main factors supporting the adoption of advanced logic chips, graphics processing units (GPUs) and AI accelerators.
Data from World Semiconductor Trade Statistics showed global semiconductor sales rose by more than 20% in July compared to the previous year, driven by demand for data centres and AI applications.
Industry association SEMI has forecast future fab equipment spending to increase by 6% in 2025 and 8% in 2026.
The positive outlook is expected to benefit local companies such as Kelington Group Bhd, which is involved in industrial gases, and UWC Bhd, which supplies precision engineering modules and system integration for wafer-fab equipment.
Kenanga also highlighted that bookings have returned to normal with minimal cancellations and costs being passed on to customers as uncertainty over US tariffs eases.
With this development, Malaysian technology companies' operations are expected to become more stable and provide more certainty to the sector's revenue projections.
