KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Nvidia has reached a historic $4 trillion market cap, cementing its dominance in the AI chip sector. But analysts warn its rapid growth could hit a wall unless the world massively expands its energy infrastructure.
Lawrence McDonald, founder of Bear Traps Report, pointed out a striking imbalance:
“You can fit the combined value of every stock in the entire uranium-nuclear energy sector nearly 50 timesinto Nvidia’s valuation. Yet Nvidia’s AI future depends on a massive energy buildout.”
Why This Matters
AI Power Demand: Morgan Stanley projects AI-related electricity use to rise 70% per year through 2027 as data centers expand.
Energy Strain: Generative AI’s inference operations—powering billions of daily queries—are now the biggest energy drain.
Nuclear’s Role: Nuclear energy offers reliable, high-capacity power, but building new plants takes years and faces regulatory delays.
Key Challenges
Renewable energy currently struggles to provide the consistent baseload power needed for AI operations.
The US is pushing for a nuclear expansion, aiming to quadruple nuclear capacity to 400 GW by 2050, but fuel shortages and infrastructure gaps remain.
Market Impact
Nvidia’s valuation is now 4.73% of the MSCI All Country World Index, surpassing Japan’s entire market weight.
The stock surged 1,535% over five years, driven by AI data center GPU sales, but trades at a premium P/E of 55.89.
Nvidia closed at $173.45, just shy of its 52-week high of $174.72. While the company remains a leader in AI hardware, its future growth could depend as much on energy policy and infrastructure as on technology itself.
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