Nvidia Earnings Spark AI Rally: Malacca Picks 3 Bursa Stocks

The rally in US artificial intelligence stocks following Nvidia’s blockbuster Q2 results and forward guidance is now rippling through the Malaysian bourse, with tech and semiconductor names poised to capture fresh momentum. On Wall Street, the Nasdaq climbed 1.6% on Thursday alone, as investors rewarded Nvidia’s record GPU shipment volumes and shrugged off US inflation headwinds. The optimism is straightforward: Nvidia’s guidance signals sustained demand for datacenter infrastructure, which flows downstream to its entire ecosystem of optical, networking, and testing equipment suppliers.

The Nvidia Effect on Malaysian Tech

Malacca Securities Research has identified three Malaysian tech plays positioned to benefit directly from this supply-chain tailwind. SKYECHIP, the semiconductor design house, is being tracked by the research house for its strategic partnerships in custom interface IP design with Cerebras Systems—a builder of wafer-scale AI platforms—and expanding design-token access with Arm Holdings. These partnerships position the company to capture intellectual property licensing and design services revenue as enterprise AI accelerator demand surges.

THMY is experiencing surging demand for its automated testing solutions tailored to AI and datacenter applications, with factory expansion underway in Penang to scale production. According to Malacca Securities, this combination of rising order intake and incremental manufacturing capacity sets the stage for margin accretion and higher utilisation rates. DNEX, the silicon photonics player, is expected to benefit from higher average selling prices (ASPs) as its optical interconnect chips command premium valuations in AI datacenter switching environments, where speed and low latency are critical.

Domestic Market Headwinds vs. Sector Tailwinds

The Malaysian bourse itself closed in negative territory on 28 August 2026, as local investors weighed Nvidia’s strength against persistent US inflation concerns. The FBM KLCI felt the pull, though sector rotation was sharp: Construction gained 1.29%, led by GAMUDA and SUNCON, while Transportation shed 0.90%, showing uneven breadth. Malacca Securities noted that despite the negative close, the overnight Wall Street bounce should provide a bid for Malaysian technology stocks on Friday trading, particularly if US inflation data does not surprise further to the upside.

The AI Infrastructure Supply Chain Play

What distinguishes Malacca Securities’ three picks is their exposure to what the research house calls the “AI infrastructure multiplier.” Nvidia’s record GPU volumes directly translate into accelerated demand for datacenter switching hardware, optical interconnects, and test-and-measurement equipment—none of which Nvidia manufactures in-house. High-speed networking specialists like Arista Networks (ANET) and Lumentum (LITE) in the US are already repricing higher. In Malaysia, DNEX and THMY occupy similar ecosystemic niches.

SKYECHIP’s Arm and Cerebras partnerships are slightly earlier-stage but strategically valuable: custom AI accelerator design is one of the fastest-growing segments post-Nvidia dominance, as hyperscalers and semiconductor companies invest billions in application-specific chips to reduce GPU dependency and lower inference costs. According to the research house, design-token relationships with Arm—the intellectual property backbone of mobile and now AI chip architecture—position SKYECHIP to capture licensing upside as these custom accelerator projects move from prototype to production.

Valuation and Risk Considerations

Malacca Securities did not publish specific target prices or earnings forecasts in this report summary. Retail investors seeking detailed valuation metrics, price targets, and consensus estimate revisions should access the full research report on M+ Online. The research house did flag that cybersecurity stocks like Palo Alto Networks (PANW) and Fortinet (FTNT) are also trading higher following strong AI-driven security demand—a secondary beneficiary play for those seeking defensive exposure within the AI upswing.

Key risks to the thesis include potential datacenter capex slowdown if generative AI adoption disappoints, supply-chain delays that push testing or optical component shortages, and margin compression if competition in AI infrastructure components intensifies. Currency headwinds—the ringgit’s strength or weakness against the US dollar—could also impact export-oriented Malaysia-listed tech firms, though this affects both revenue translation and cost of goods sold.

What This Means for Retail Investors

For Malaysian retail investors holding or considering positions in homegrown tech stocks, Malacca Securities’ report underscores that Nvidia’s earnings are not an isolated event—they validate years of AI infrastructure investment thesis and suggest that supply-chain partners remain under-owned relative to end-market growth. The research house’s three picks offer different risk-reward profiles: SKYECHIP is earlier-stage and IP-focused; THMY is more mature and production-capacity-constrained; DNEX is margin-sensitive to optical networking adoption rates.

None of these stocks move in lockstep with Nvidia, but all three are structurally positioned to benefit from accelerating datacenter build-outs and AI accelerator deployment cycles that Nvidia’s guidance now suggests will persist for years, not quarters. The challenge for equity research investors is execution risk—whether these Malaysian companies can scale, maintain gross margins, and capture market share before larger, better-capitalised peers move in.

Key Takeaways

• Nvidia’s blockbuster Q2 results and forward guidance have reinvigorated the AI infrastructure trade, with Wall Street’s Nasdaq up 1.6% Thursday and optimism flowing to networking, optical, and testing equipment suppliers.
• According to Malacca Securities Research, SKYECHIP, THMY, and DNEX are positioned to capture AI and datacenter demand via custom accelerator IP design, automated test solutions, and silicon photonics ASP expansion, respectively.
• The Malaysian bourse closed negative on 28 August despite global tech strength, signalling uneven sentiment; Malacca Securities expects the FBM KLCI tech sector to track Wall Street higher Friday, barring fresh inflation surprises.
• SKYECHIP’s partnerships with Cerebras Systems and Arm Holdings expose the company to the high-margin custom AI accelerator design cycle that is now competing with Nvidia for enterprise adoption.
• Retail investors should review the full Malacca Securities report on M+ Online for detailed valuations, target prices, and earnings projections before making investment decisions.

Full Report: The complete Malacca Securities (M+ Online) research report Nvidia Print Drives Rally in Tech & AI Infrastructure (published 28 August 2026) is available at https://mplusonline.com/research-report/detail/1406.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.

Want access to full M+ Online research reports and AI stock analysis? Contact Dexter Chia, AI-Driven Remisier at Malacca Securities Sdn Bhd. M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?