Nvidia Favoured Amid Softer Wall Street

Nvidia’s USD108 billion Q3 revenue target marks a watershed moment — it will be the first quarter the chip giant projects to breach the USD100 billion threshold, excluding China data centre revenue, according to Malacca Securities Research. This projection underscores the AI chipmaker’s unprecedented scale as it ramps up its next-generation Vera Rubin platform, with heavyweight customer Amazon AWS committing to procure 2 million GPUs and new Vera CPUs.

Wall Street retreated across the board on Monday as geopolitical tensions and monetary policy jitters weighed on sentiment. The Dow, S&P 500 and Nasdaq fell 0.7%, 0.3% and 0.1% respectively, hurt by direct U.S.-Iran military strikes that sent crude oil prices surging toward USD90.4 per barrel. Fed Chair Kevin Warsh’s hawkish Jackson Hole debut also triggered a bond selloff, with rate-hike odds climbing sharply to 59.9% for a 25 basis-point increase by September — up from 39.9% just a week prior.

The Local Bourse Cracks Under Tech Pressure

Bursa Malaysia’s trading session moved in the opposite direction to overnight gains in New York, closing in the red as technology stocks bore the brunt of selling pressure. The Technology sector dropped 3.65%, while Utilities fell 2.41%, with all other sectors also ending lower. ZETRIX’s dramatic 30.0 sen limit-down plunge was a key circuit-breaker event that soured investor appetite for local equities.

Malacca Securities expects the FBM KLCI to open the abbreviated trading week on a softer note, tracking Wall Street’s overnight retreat and ongoing geopolitical uncertainty. The shortened calendar itself adds to seasonal volatility patterns typical in early September, the research house noted.

Nvidia’s Track Record and Guidance: The Numbers

Malacca Securities remains bullish on Nvidia, citing its stellar operational consistency. The company has now delivered 15 consecutive quarters of earnings beats, a testament to consistent execution and demand resilience in the AI infrastructure cycle. Q2 results were particularly strong, reinforcing the narrative of sustained high growth ahead.

The USD108 billion Q3 revenue projection is not merely a forecast — it represents a structural shift in Nvidia’s business scale and customer concentration risk mitigation. AWS’s stated intention to procure 2 million GPUs demonstrates that hyperscaler demand for Vera Rubin chips remains robust and is now translating into concrete procurement commitments. This supply-chain confidence is rare in cyclical chip cycles and underscores Vera Rubin’s market acceptance.

Domestic Picks: GREATEC, SPRITZER and SCGBHD

For Malaysian retail investors seeking exposure to secular tailwinds without direct Nvidia exposure, Malacca Securities identified three domestic names to monitor. Automation solutions provider GREATEC holds an RM1.8 billion order book representing 2.3x its FY25 revenue — a healthy pipeline spanning data centre infrastructure, nuclear energy, solar and life sciences sectors. This multi-sector diversification shields it from single-cycle risk.

SPRITZER and LWSABAH are positioned to benefit from escalating haze and forest fires in Kalimantan, Indonesia, which should drive consumer demand for bottled drinking water across Southeast Asia. Meanwhile, cable manufacturer SCGBHD aligns with Malaysia’s data centre boom and the National Energy Transition Roadmap (NETR) execution, offering indirect exposure to infrastructure buildout without the volatility of pure-play chip stocks.

What This Means for Retail Investors

The divergence between Wall Street weakness and Malacca Securities’ continued Nvidia confidence highlights a key split in market psychology: macro headwinds (geopolitics, rate hikes) are creating near-term pressure, but mega-cap tech fundamentals remain insulated by structural AI capex cycles. Retail investors holding or considering Nvidia exposure should weigh the 59.9% probability of a 25bps rate hike against the company’s 15-quarter earnings-beat streak and USD100bn+ revenue guidance.

For those with lower risk tolerance or seeking domestic alternatives, the identified local plays offer thematic alignment with global secular trends — energy transition, AI infrastructure, and consumer staples resilience — without direct currency or geopolitical China exposure. However, GREATEC, SPRITZER, LWSABAH and SCGBHD carry their own company-specific and sector risks that warrant deeper due diligence before any portfolio decision.

The full Malacca Securities research report, titled “Softer Wall Street But Nvidia Remains Favoured” (published 2026-09-01), is available on M+ Online. Retail investors are encouraged to review the complete analysis and consult their advisers before making any investment decisions.

Key Takeaways

• Nvidia guidance for USD108bn Q3 revenue marks its first-ever USD100bn+ quarter; 15 consecutive earnings beats reinforce the AI bull thesis according to Malacca Securities
• Wall Street retreated on Iran tensions (oil spiking to USD90.4/bbl) and hawkish Fed signals; Dow -0.7%, S&P 500 -0.3%, Nasdaq -0.1%
• Bursa Malaysia bucked the trend lower, with Technology -3.65% and Utilities -2.41%; ZETRIX’s 30.0 sen limit-down weighed sentiment
• Domestic automation play GREATEC offers RM1.8bn order book (2.3x FY25 revenue) with exposure to DC, nuclear, solar and life sciences
• SPRITZER, LWSABAH and SCGBHD positioned for upside from Indonesia haze-driven bottled water demand and Malaysia’s data centre and NETR buildout, per Malacca Securities

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?