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...
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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