KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Market Shift:
Nvidia has surpassed Microsoft to become the world's most valuable company, crossing $3.7 trillion in market cap. This milestone highlights the seismic shift in semiconductor demand, driven by the explosive growth of AI infrastructure spending.
ETF Landscape:
Traditional semiconductor ETFs like SMH and SOXX remain anchored to older industry leaders such as Intel and Texas Instruments, whose growth has lagged amid the AI revolution. Meanwhile, funds like XSD and thematic AI ETFs have adapted, capturing more of the next-gen semiconductor players — from GPU innovators to memory and networking chip firms fueling the AI boom.
Risks & Opportunities:
Heavy weighting in Nvidia (often over 20%) poses concentration risks for broad-based ETFs. While this has supercharged returns in the near term, investors should be mindful of potential reversals if Nvidia falters. At the same time, legacy chipmakers have struggled, with companies like Intel underperforming despite industry tailwinds.
Money Master Take:
Evaluate ETF compositions to ensure exposure isn't overly reliant on one mega-cap stock.
Consider diversifying into funds reflecting new AI supply chain dynamics.
Monitor semiconductor earnings reports closely — surprises here could drive big swings in ETF performance.
Bottom Line: The AI-driven chip rally isn't over — but smart investors should position now for the next phase of growth, while managing risks tied to concentrated Nvidia exposure.
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