KUALA LUMPUR, April 18 (Bernama) -- Bursa Malaysia closed higher on the final trading day of the week, finishing just a whisker away from the psychological 1,500 mark, lifted by positive regional cues and improved investor sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 16.13 points, or 1.09 per cent, to 1,499.40 compared to Thursday’s close of 1,483.27. The benchmark index opened 1.63 points lower at 1,481.64 and thereafter slipped to 1,480.52 in early trading before gaining strength to end the day at its intraday high. In the broader market, gainers thumped decliners 543 to 256, while 441 counters were unchanged, 1,183 untraded, and 29 others suspended. Turnover dwindled to 1.69 billion units valued at RM1.24 billion from 2.40 billion units valued at RM1.60 billion on Thursday.
Semiconductor stocks exploded higher Wednesday, leading a broad market rally after Trump paused reciprocal tariffs for most countries (except China). But investors are now asking: Is it time to buy chip stocks?
Market Snapshot:
Nasdaq surged 12% after Trump's tariff pause announcement
SOXX ETF (Semiconductor Index) jumped 18%, rebounding from a 33% plunge since Feb 19
Chip giants:
Nvidia (NVDA): +18.72%
Taiwan Semi (TSM): +12.29%
Qualcomm (QCOM): +15.19%
Amazon (AMZN): +11.98% (on chip/data optimism)
Why Chips Are Volatile
Chip stocks are highly cyclical — when demand drops, profits fall fast.
Production can’t adjust as quickly as customer orders, leading to price pressure and margin declines.
When macro fears ease (like with Trump's tariff shift), these same names rebound sharply.
📉 The Buy Signal: Valuation
Before the rally, chip valuations were at historic lows, making them attractive.
Nvidia’s pre-rally price ($96) implied just 25x estimated earnings (near its 3-year low multiple of 24x).
Even in a “worst-case” recession scenario, Nvidia’s EPS might fall 14% to $3.80 — but the stock still looks reasonably priced.
“If Nvidia drops again to $96, it becomes a strong buying opportunity,” said analyst Stacy Rasgon (AllianceBernstein).
AI Spending = Long-Term Tailwind
Big Tech’s rising investments in AI and data centers will continue to boost chip demand, especially for leaders like Nvidia.
Even if recessionary risks return, structural growth drivers remain intact.
When to Buy:
Buy the dip: If chip stocks pull back again on policy uncertainty, valuations will likely look even more attractive.
Hold for long-term AI upside: As companies scale up AI capabilities, earnings will recover and grow, fueling the next rally.
Chip stocks are back, but the real opportunity might come on the next dip. Keep your eye on valuation, tariff developments, and AI trends—and be ready to pounce.
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