Latest news with #Nationgate
New Straits Times
02-06-2025
- Business
- New Straits Times
Removal of Biden-era AI diffusion rule positive for Nationgate
KUALA LUMPUR: The US' move to revoke and revise the Biden-era artificial intelligence (AI) diffusion rule is seen as a near-term positive for Nationgate Holdings Bhd. The original rule, which aimed to restrict AI chip exports, was set to take effect on 15 May. Affin Hwang Investment Bank Bhd said the US is also reportedly considering replacing the tiered approach with a global licensing regime and using it as a negotiating tool in trade talks. "As such, the access to AI chips will likely eventually hinge on the respective government-to-government agreements with the US. "We make minimal changes to our financial year 2025 to financial year 2027 (FY25-FY27) earnings per share (EPS) forecasts for housekeeping reasons pending further clarity on the AI chip export rule," it said. Affin Hwang updated its valuation base year to financial year 2026 and raised the 12-month target price to RM1.73, maintaining its target price to earnings ratio (PE) of 19.4 times. The firm also upgraded the stock to a 'Buy' call, following a 43 per cent year-to-date pullback in its share price. Affin Hwang said Nationgate's core net profit of RM78 million for the first quarter of 2025 (1Q25) exceeded expectations, making up 45 per cent of its full-year forecast and 39 per cent of the consensus estimate. Nationgate's performance was driven by higher-than-anticipated deliveries of AI servers.
New Straits Times
08-05-2025
- Business
- New Straits Times
AI-related counters on Bursa mixed on Trump's latest plan
Bernama KUALA LUMPUR: Industrial products and services counters on Bursa Malaysia related to artificial intelligence (AI) chip making showed a mixed reaction to the latest plan announced by the Trump administration to rescind and replace Biden-era global AI chip export curbs. As at 10.51am, Nationgate Holdings shares rose by 12 sen to RM1.61 with 44.67 million shares changing hands, while Kelington Group's share price slipped 2.0 sen to RM3.40 with 123,900 shares transacted. According to Reuters, the Trump administration plans to rescind and revise the Biden-era export restrictions on advanced AI chips, as a United States (US) Department of Commerce spokesperson confirmed on Wednesday. The existing rule, aimed at curbing China's access to high-end AI computing power, divided the world into strategic tiers to preserve technological advantages for the US and its allies. In a related development, Reuters also reported that President Trump is expected to announce a decision to ease AI chip export restrictions to select Gulf nations during his Middle East visit from May 13–16. Although the policy reversal has not yet been finalised, Kenanga Investment Bank Bhd said the news flow is expected to buoy sentiment across the global semiconductor space, particularly among AI chipmakers such as NVIDIA and AMD. The investment bank said that on the local front, this would be a near-term catalyst for Nationgate, whose share price has declined by 43 per cent since the AI diffusion restrictions were first introduced on Jan 10, 2025. "Should the curbs be relaxed or revised, Nationgate stands to benefit from improved visibility and demand recovery in AI-related module assembly. "In addition, we also do not rule out the possibility of government-to-government agreements under the upcoming revised AI diffusion rules," it said. Maintaining a "neutral" call on the technology sector, Kenanga said Kelington Group remained its sole top pick, supported by robust earnings visibility driven by its strong order and tender books. While keeping several "outperform" calls under its coverage, the bank said near-term uncertainties stemming from Trump's tariff threats and supply chain disruption have kept these stocks within a volatile trading range. "As such, we recommend that aggressive investors adopt a more trading-oriented approach amid the prevailing uncertainties. "Conversely, we advise conservative investors to continue monitoring sector developments and consider investing when greater clarity emerges," it said.
