YTL Power Shares Slide to RM4.69 on Nvidia Spy Scrutiny

Why Did YTL Power Shares Drop to RM4.69 on Tuesday?

YTL Power International Bhd (KL:YTLPOWR) fell as much as 40 sen, or nearly 8%, before paring its losses. The stock closed at RM4.69, its lowest since Aug 10.

The benchmark FBM KLCI fell 0.8% the same day. YTL Power’s drop was roughly ten times steeper than the index’s decline.

How Is YTL Corp Affected by the YTL Power Share Price Fall?

YTL Corp Bhd (KL:YTL) holds a 51% stake in YTL Power. Its shares slipped a little under 3% to RM2.00.

YTL Corp’s exposure runs directly through that 51% stake, so the subsidiary’s regulatory risk flows up to the parent.

What Is the Nvidia Espionage Case Behind the Selloff?

Weekend news reports said Jensen Huang, the chief executive of Nvidia, had an affair with a suspected Chinese spy. The spy is accused of helping entities circumvent American restrictions on imports of high-performance chips to China.

Huang admitted to the affair, according to news reports, and Nvidia launched an internal investigation. The alleged spy is linked to Singapore-based Megaspeed International.

In October, The New York Times reported that Megaspeed has a wholly-owned subsidiary in Malaysia that aims to buy nearly US$2 billion (RM8.4 billion) worth of Nvidia chips. The firm is now under investigation by the US and Singapore.

Is YTL Power Linked to Megaspeed or Speedmatrix?

No credible reports link YTL Power to Megaspeed or its Malaysian unit, Speedmatrix Sdn Bhd. The company has not been implicated in the probe.

Datuk Seri Johari Abdul Ghani of the Ministry of Investment, Trade and Industry said on Tuesday that the government has yet to receive evidence that Speedmatrix violated Malaysian law.

“Malaysia will not allow itself to be used as a channel to circumvent export controls, and the government will not hesitate to act firmly against any company found to have violated Malaysian law,” Johari was quoted as saying by Malaysiakini.

Is YTL Power’s Valuation Now Worth Monitoring?

Hang Tuah Amin Tajudin, chief executive officer of PMB Investment Bhd, told The Edge that the current valuation now looks more attractive. He said he would wait for clarity on the allegations.

“Nothing has been proven against YTL, but the potential US regulatory implications are spooking investors,” he said. “If unfounded, we could see a decent rebound.”

What Does YTL Power’s Johor AI Data Centre Mean for Shareholders?

YTL Power operates a data centre in Johor that powers artificial intelligence. The facility is equipped with some of Nvidia’s latest graphics processing units.

That makes Nvidia’s legal and regulatory standing a direct variable for YTL Power’s partnership. Analysts note that investors may want to watch how the US and Singapore probes develop. For more on screening AI-linked stocks, see AI Stock Analysis for Malaysians.

Key Takeaways

• YTL Power closed at RM4.69 on Nov 10, its lowest since Aug 10, after a 40 sen intraday drop.
• YTL Corp (51% owner) fell to RM2.00, down a little under 3%.
• No credible reports link YTL Power to Megaspeed or Speedmatrix.
• The government has yet to receive evidence of a Malaysian law violation.
• PMB Investment’s Hang Tuah Amin Tajudin says the valuation looks more attractive, pending clarity.

Disclaimer: This article is for general information only and is not a recommendation to buy, sell or hold any security. Do your own research before making any investment decision.

Frequently Asked Questions

Why did YTL Power shares fall on Nov 10?

YTL Power shares fell as much as 40 sen, or nearly 8%, before closing at RM4.69, their lowest since Aug 10. The drop followed renewed scrutiny of Nvidia, its data centre partner, over espionage allegations.

Is YTL Power linked to Megaspeed International?

No credible reports link YTL Power to Megaspeed International or its Malaysian unit Speedmatrix Sdn Bhd. The Malaysian government said on Tuesday it has yet to receive evidence that Speedmatrix violated Malaysian law.

How much does YTL Corp own of YTL Power?

YTL Corp Bhd (KL:YTL) holds a 51% stake in YTL Power. YTL Corp closed a little under 3% lower at RM2.00 on the same day.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.

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