SkyeChip, NationGate head the pack as tech rally continues

Malaysian technology stocks surged as investors focused on key developments in the AI semiconductor supply chain, propelling the Bursa Malaysia Technology Index to a two-year high. SkyeChip Bhd and NationGate Holdings Bhd were among the top performers, with SkyeChip rising 10.3% to RM3.25 and NationGate climbing 8.4% to RM1.54. SkyeChip, a semiconductor design firm, has skyrocketed 269% since its IPO in May, while NationGate has seen a 69% year-to-date increase.

Dagang NeXchange Bhd led the trading volume, up 6.4%. Meanwhile, Stratus Global Holdings Bhd, a recent listing, gained 5.9% and Inari Amertron Bhd, a semiconductor assembly and test company, rose 5%. Analysts noted the AI investment cycle's expansion, with the local semiconductor ecosystem gaining momentum in high-speed optical connectivity, AI accelerators, advanced packaging, and semiconductor infrastructure.

BIMB Securities highlighted diversification efforts driven by geopolitical fragmentation and China's push for self-sufficiency, potentially benefiting Malaysian and ASEAN semiconductor manufacturers.