KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
As the Q2 earnings season kicks off, all eyes are on Big Tech, with Netflix set to report first on July 17. These earnings are poised to shape broader market sentiment amid ongoing economic uncertainty and aggressive U.S. tariff policies.
Despite macro headwinds, the outlook for tech giants remains relatively strong — especially in AI chips, cloud services, and digital advertising.
Key Standouts from Q2 Estimates (YoY Growth)
| Company | Revenue Growth | EPS Growth |
|---|---|---|
| Nvidia (NVDA) | +51.86% | +38.66% |
| Netflix (NFLX) | +15.53% | +44.80% |
| Meta (META) | +14.25% | +13.68% |
| Microsoft (MSFT) | +14.02% | +14.45% |
| Alphabet (GOOGL) | +10.73% | +14.92% |
On the flip side:
Tesla (TSLA) is expected to report a -12.04% revenue drop and a -20.52% EPS slump, weighed by weak EV sales.
Apple (AAPL) is also seeing soft momentum with 3.49% revenue growth, signaling slower iPhone shipments.
AI Is the Center of Gravity
Nvidia remains the flagship AI play. Explosive demand for its chips continues to drive both revenue and EPS growth. As enterprise AI adoption rises, Nvidia is expected to benefit further — especially after its China-specific H20 chip was approved for re-sale.
Big Cloud providers — Microsoft, Amazon, and Google — are also riding the AI wave. AI-related workloads now make up over 10% of Azure’s cloud usage. In response, capital expenditures are surging, with expected 2025 capex reaching $330 billion, up 49.3% YoY — reflecting confidence in long-term AI growth.
Digital Ads & Streaming: Resilient but Competitive
Alphabet and Meta continue to benefit from strong ad tool adoption (e.g., Performance Max, Advantage+). Advertisers are turning to AI for better targeting and optimization, supporting top-line growth.
Netflix, the earnings season opener, is forecasted to post 44.8% EPS growth. Investors will be watching subscriber trends and margins from long-form original content, which boosts profitability.
Risks on the Horizon
Tariff headwinds, especially for hardware players like Tesla and Apple.
Slowing consumer demand in hardware as seen in Tesla’s double-digit delivery decline and Apple’s Q/Q iPhone drop.
Regulatory scrutiny and rising capex could pressure future margins.
Analyst Takeaway
“This is a litmus test earnings season. AI and cloud momentum look strong, but hardware fatigue and macro risks remain. Nvidia and Microsoft are our top picks, while we remain cautious on Tesla and Apple.”
Top Sector Pick (Investor Poll):
AI Chips – 72%
Followed by Cloud Services – 26%
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