KUALA LUMPUR, March 9 (Bernama) -- Bursa Malaysia closed broadly lower today in line with widespread selling across regional markets as the intensifying conflict in the Middle East dampened investor sentiment and reignited concerns over global inflation. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 43.89 points, or 2.56 per cent, to close at 1,674.17 from last Friday’s close of 1,718.06. The benchmark index, which opened 18.93 points lower at 1,699.13, moved between 1,664.07 and 1,702.77 during the day. In the broader market, losers trounced gainers 1,141 to 283, while 308 counters were unchanged, 900 untraded, and 33 suspended. Turnover expanded to 5.52 billion units worth RM5.87 billion from last Friday’s 3.71 billion units worth RM4.05 billion.
Shares of NVIDIA Corp fell in premarket trading as escalating Middle East tensions raised concerns about energy costs and broader semiconductor supply chain risks.
Key Takeaways
Nvidia fell 1.3% in premarket; down 4.7% YTD
Chip stocks broadly weaker amid oil shock fears
Main risk is rising energy costs, not direct production shutdowns
Asian semiconductor suppliers hit hardest
Chip Sector Under Pressure
Advanced Micro Devices Inc. and Broadcom Inc. both declined in premarket trading.
Taiwan Semiconductor Manufacturing Co. dropped over 4% in Taiwan trading.
Key Point: The immediate threat is not factory shutdowns — it’s higher energy and transportation costs squeezing margins.
Semiconductor fabrication facilities are extremely energy intensive. Sustained increases in electricity and fuel costs could materially impact production economics.
Asia Bears the Brunt
Asian chip suppliers have fallen sharply due to heavy reliance on Middle East energy flows through the Strait of Hormuz.
Declines included:
SK Hynix Inc. -9.5%
Samsung Electronics Co -7.8%
Both companies are key memory suppliers to Nvidia.
The Strait of Hormuz remains effectively blocked, raising concerns about oil and LNG supply disruptions.
Inflation Ripple Effect
Higher oil prices could:
Increase semiconductor manufacturing costs
Raise logistics expenses
Pressure corporate margins
Add to global inflation concerns
This creates a secondary risk for tech valuations if inflation delays interest-rate cuts.
Next Catalyst: Nvidia GTC
Nvidia’s upcoming GTC conference (March 16–19) is expected to showcase new hardware innovations.
However, macroeconomic fears could overshadow product announcements if geopolitical tensions persist.
Bottom Line
Nvidia is not facing direct production disruption — yet.
But the broader risk lies in:
Sustained oil above US$100
Rising electricity costs
Margin compression across the chip ecosystem
Potential slowdown in tech demand
If energy volatility persists, semiconductor stocks could remain under pressure despite strong AI fundamentals.
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