KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Key Takeaways
Stock Plunge: Cambricon Technologies fell nearly 9% Friday, its steepest drop since April, after cautioning investors that its recent share-price surge had outpaced fundamentals.
Rally Context: Shares had soared 134% since late July, far outstripping the CSI 300 Index’s 8% gain, amid a broader AI-driven market rally in China.
Warning: The company cited “non-existent pipeline products,” ongoing US sanctions, and the challenges of moving up the technology value chain as risks.
Guidance: Revenue for 2025 is projected at 5–7 billion yuan, versus 1.2 billion yuan in 2024, highlighting strong top-line growth expectations.
Market Dynamics
Cambricon’s filing underscores growing official and corporate caution over China’s AI-chip stock frenzy. Regulators have already signaled concern as retail investors dominate trading and banks tighten scrutiny on stock-funded credit usage.
Peer firm Dosilicon suspended trading Friday due to “unusual fluctuations,” reflecting heightened volatility across the chip sector.
Strategic Context
Cambricon is China’s largest publicly traded AI-chip designer and a key domestic alternative to Nvidia, alongside Huawei.
Rising demand from Alibaba, other tech majors, and AI startups has fueled its growth momentum, supported by Beijing’s push for homegrown semiconductors amid Trump administration export curbs.
Authorities continue to encourage government and enterprise adoption of local AI chips to mitigate security and trade risks.
Investor Outlook
While Cambricon’s growth prospects remain significant, particularly given China’s push to scale AI infrastructure, the company’s own warning suggests its stock has deviated from fundamentals.
Near-term volatility is likely, with valuations sensitive to both regulatory cooling measures and the durability of retail investor momentum.
Long-term positioning depends on Cambricon’s ability to scale production, maintain competitiveness with Huawei, and withstand US sanctions.
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