KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaway:
Broadcom’s surprise $10B AI chip order — likely from OpenAI — has reignited the “ASIC vs GPU” debate. While Nvidia faces pressure on market share, Taiwan Semiconductor looks set to win no matter which side dominates, and storage plays like Seagate are quietly becoming star performers.
Broadcom’s Big Win
Broadcom stock surged nearly 10% after earnings, powered by news that one of its custom AI chip projects has converted into a major qualified customer — widely believed to be OpenAI. This deal is expected to add $10B in revenue from FY26, with demand stretching into FY27.
The ASIC vs GPU Equation
Nvidia’s GPUs deliver ~75–80% gross margins, but they’re costly.
According to TD Cowen, custom ASICs can yield higher returns:
Nvidia GPU: ~24% IRR
ASIC at 70% Nvidia performance: ~35% IRR
ASIC at 55% performance: breakeven ~24% IRR
This explains why hyperscalers like OpenAI, Meta, and others are exploring ASICs. However, the risk lies in scalability: custom chips must keep pace with Nvidia’s rapid product cycles or risk becoming expensive missteps.
TSMC: The Real Winner
Whether the future is GPU-heavy, ASIC-heavy, or hybrid, all roads lead to $Taiwan Semiconductor (TSM.US)$.
TSMC forecasts 45% CAGR (2024–2029) across GPUs, ASICs, and CPUs.
Its advanced packaging tech (CoWoS-S, R, L) is essential for AI compute — nearly every top AI GPU and ASIC depends on it.
Expansion in N5/N3 and future N2 nodes further locks in its strategic role.
Don’t Forget Storage
Behind the chip headlines, storage names are quietly leading the S&P 500:
$Seagate (STX.US)$: Best performer YTD, even ahead of Palantir.
$Western Digital (WDC.US)$: Up 104%, ranking #3 in 2025 performance.
The structural driver: AI workloads are data-heavy. Enterprises must store not just existing data, but a compounding base of new information each year. With memory suppliers cutting capacity and raising prices, the storage upcycle could extend into 2026.
Investor Takeaway
Broadcom (AVGO.US): Short-term winner from OpenAI’s deal, though ASIC adoption risk remains.
Nvidia (NVDA.US): Still benefits from booming AI demand, but margins face pressure.
TSMC (TSM.US): A “picks-and-shovels” play, positioned to win in every AI compute scenario.
Storage (STX, WDC): Quiet outperformers riding the AI data surge.
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