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...
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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