Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
Malaysia’s effective US tariff rate may ease to 14.3%
US Supreme Court struck down Trump’s reciprocal tariffs under IEEPA
Malaysia remains relatively competitive within ASEAN
Electronics and semiconductor exports continue to enjoy exemptions
What Changed?
The Supreme Court of the United States ruled that President Donald Trump did not have authority under the International Emergency Economic Powers Act (IEEPA) to impose reciprocal tariffs.
Following the ruling:
The US replaced them with a blanket Section 122 tariff, initially 10%, later raised to 15%
US Customs stopped collecting tariffs deemed illegal from Feb 24
Malaysia’s Effective Rate: What It Means
According to Maybank Investment Bank:
Current effective US tariff rate: 15.6%
Expected to settle at: 14.3%
Overall US headline tariff: 15%
Malaysia’s rate remains:
Lower than Indonesia, Vietnam, Thailand and the Philippines
Slightly above the global 15% rate due to product-specific duties
Why Malaysia Remains Resilient
Several major export categories remain exempt:
Semiconductors
Electronics
Pharmaceuticals
These sectors account for a significant share of Malaysia’s US-bound exports, cushioning the impact of tariff changes.
Singapore continues to enjoy the lowest effective tariff rate in ASEAN, while countries with fewer exempted exports face higher duties.
Will Trade Policy Volatility Continue?
Maybank IB cautioned that uncertainty remains:
The US could still use Section 301 (unfair trade practices)
Or Section 232 (national security probes)
Product-specific exemptions (e.g. pharma) may be reviewed
However:
Section 122 tariffs can only last 150 days unless extended by Congress
Future measures are expected to be more targeted, not broad-based
China+1 Strategy Intact
Despite narrower tariff differentials with China:
Supply chain diversification under the China+1 strategy remains intact
AI-related global investments continue supporting Malaysia’s electronics exports
Key point: Malaysia’s relative positioning in ASEAN is largely unchanged.
Bottom Line
Malaysia’s tariff outlook has improved modestly — but uncertainty remains.
While effective duties may ease below 15%, the broader trade environment is still fluid. That said, Malaysia’s strength in semiconductors and electronics keeps it competitively positioned within ASEAN.
Key Takeaways
Effective US tariff could fall to 14.3%
Supreme Court ruling reduces broad tariff risk
ASEAN tariff competitiveness ranking unchanged
Electronics sector remains shielded
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