KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
🚨 DeepSeek Disrupts Nvidia’s AI Dominance
🔹 Chinese AI startup DeepSeek claims to achieve high performance with fewer Nvidia chips, raising concerns over AI hardware demand.
🔹 Investors are now hesitant to “buy the dip”—a sharp contrast to previous Nvidia sell-offs.
🔹 The stock only saw buying interest after falling 21%, a rare occurrence in Nvidia’s meteoric rise.
💬 Gene Munster (Deepwater Asset Management): "DeepSeek was a wake-up call. Nvidia went from an impenetrable story to one that can shift dramatically."
📌 Why It Matters: Investors fear AI demand may not be as insatiable as before, and Nvidia’s dominance is being challenged.
📊 Investor Confidence Wobbles Ahead of Earnings
📌 Nvidia’s earnings report on Feb 26 will be crucial.
- Expected revenue growth: 73% (down from 94% last quarter and 265% a year ago).
- Concerns that past exponential growth will be tough to sustain.
📌 Morgan Stanley analysts warn that negative sentiment is now the biggest risk.
💬 "The cynicism is overwhelming. It remains to be seen if revenue acceleration can mitigate that concern."
📌 If Nvidia disappoints, shares could remain range-bound until the second half of 2025.
📉 Nvidia's Blackwell Chips: Another Uncertainty
🔹 Investors are uneasy about the rollout of Nvidia’s next-gen Blackwell chips.
🔹 Supply chain issues and manufacturing delays are raising costs and slowing deployment.
🔹 Despite Nvidia’s assurances, skepticism remains.
💬 Ivana Delevska (SPEAR Invest): "Management says everything is on track, but for some reason, investors aren’t convinced."
📌 The stock’s muted recovery suggests that Nvidia must deliver exceptional earnings to regain investor confidence.
💰 Is Nvidia’s Stock Now a Buy?
✔️ Evercore ISI sees the selloff as a buying opportunity, upgrading the stock to a tactical outperform ahead of earnings.
✔️ Valuation has become more attractive: Nvidia now trades at 30x forward earnings, down from a 5-year average of 40x.
📌 However, without a strong earnings beat, Nvidia could struggle to recover quickly.
🔍 What’s Next for Nvidia?
✔️ Feb 26 earnings report will set the tone for the stock’s future.
✔️ Blackwell chip rollout updates will be closely scrutinized.
✔️ Investors will watch how AI spending by Amazon, Google, Meta, and Microsoft plays out in the coming months.
📌 For now, Nvidia is no longer “bulletproof”—and DeepSeek’s challenge is a test of its AI leadership.
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