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.
Amid global trade tensions and US chip restrictions, China is quietly constructing a massive AI infrastructure in Xinjiang’s deserts, aiming to install over 115,000 Nvidia AI processors in 39 data centers—despite US export bans.
Key Takeaways for Investors:
- Massive Infrastructure Build-Up:China is developing a huge AI computing hub in Yiwu County, Xinjiang, supported by cheap renewable energy and strategic positioning. If completed, it could support advanced AI models like ChatGPT rivals.
- Targeting Nvidia H100 & H200 Chips:These chips are banned from export to China since 2022, raising questions about how China intends to source them. US officials are skeptical about a black market capable of delivering 100,000+ chips.
- Geopolitical Tensions Rise:The initiative adds fuel to the US-China tech cold war. It also exposes cracks in global chip export enforcement and raises national security alarms.
- Potential Smuggling or Alternatives?While Nvidia denies involvement, US officials confirm smuggling is happening. Some believe China may attempt a hybrid approach with Huawei-produced alternatives and whatever restricted chips they can acquire.
- Why Xinjiang?The region offers cool climate, cheap land, and renewable energy, making it ideal for power-hungry AI data centers. Local governments are signaling loyalty to national AI goals.
Investor Watchlist:
Nvidia (NVDA): In the spotlight as the key chip supplier (despite restrictions).
Huawei: Likely beneficiary if China fails to obtain sufficient Nvidia chips.
AI Infrastructure Stocks: Firms involved in cooling, data center power, and memory solutions could benefit globally.
Bottom Line:
While China’s desert AI dream may seem far-fetched, its scale and ambition signal a long-term race for AI supremacy. Investors should monitor US policy responses, Nvidia’s export exposure, and China’s pivot toward domestic chip solutions.
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