AI Infrastructure Boom Lifts Nvidia, Bloom Energy on Wall Street

Wall Street Stumbles on Iran Tensions; AI Infrastructure Stocks Shine

US equity markets retreated across the board on Tuesday as renewed military strikes on Iran sent oil prices spiking to USD95.2 per barrel, weighing on sentiment across three major indices. The Dow Jones fell 0.8%, the S&P 500 dropped 0.7%, and the Nasdaq slid 1.0%, according to Malacca Securities Research. Despite the broader market weakness, the research house identifies artificial intelligence infrastructure as a standout sector with structural tailwinds that remain intact.

Nvidia and Bloom Energy: The AI Power Play

Malacca Securities Research maintains confidence in Nvidia (NVDA) following its robust second-quarter earnings beat, which the research house notes signals sustained momentum in global AI infrastructure deployment with no signs of near-term deceleration. The chipmaker’s strong operational performance reflects healthy demand for GPU servers across data centre operators building out AI capabilities.

Equally compelling to the research house is Bloom Energy (BE), which has secured a USD25 billion AI infrastructure power-financing partnership with Brookfield alongside a 2.8 gigawatt procurement framework with Oracle. According to Malacca Securities Research, these deals position Bloom Energy to capture structural growth from the energy-intensive requirements of AI data centres, where power supply and reliability are mission-critical.

FBM KLCI Follows Wall Street Lower; Local Opportunities Emerge

The FBM KLCI is expected to trade weaker in line with overnight US losses, with Malacca Securities Research flagging continued geopolitical uncertainty as a headwind for regional sentiment. The Energy sector bucked the trend, advancing 1.47% following the crude price spike, while Industrial Products underperformed with a 2.47% decline.

On the domestic stage, Malacca Securities Research identifies SPRITZER and LWSABAH as beneficiaries of escalating haze and forest fires across Kalimantan, Indonesia, which are expected to drive a surge in bottled drinking water consumption throughout Malaysia. The research house also highlights MNHLDG, a high-voltage substation and underground utility engineering provider, as a key play on Tenaga Nasional’s (TNB) newly launched 500-kilometre, 500-kilovolt National Grid Backbone transmission line—the country’s longest 500kV system. According to Malacca Securities Research, the grid expansion project should sustain demand for MNHLDG’s infrastructure solutions.

Valuation and Structural Drivers

The thesis underpinning Malacca Securities Research’s AI infrastructure preference rests on two pillars: first, the empirical evidence that quarterly earnings from leading chipmakers and power-solution providers continue to exceed consensus forecasts; second, the capital intensity of building AI data centre capacity requires multi-year, committed spending by hyperscalers. The research house projects that this spending cycle remains in early innings globally.

For energy counters, the immediate trigger is crude pricing near USD95 per barrel, which typically translates to improved cash flow visibility for upstream and midstream operators. Malacca Securities Research notes traders could target energy stocks for short-term tactical positions if geopolitical tensions persist.

What This Means for Retail Investors

Retail investors holding a mix of local and international exposure face a split decision on current technicals. For those with US dollar capacity, Malacca Securities Research’s conviction in AI infrastructure plays—underpinned by tangible partnership announcements and earnings beats rather than speculative narrative—offers a defensive narrative within a softer tape. Energy stocks present a shorter-duration opportunity tied to oil price levels; investors should monitor Iran–US developments and crude price volatility as the key signposts.

On the Bursa Malaysia side, the local consumption plays flagged by Malacca Securities Research (bottled water, grid infrastructure) rest on visible, near-term catalysts—haze severity and TNB’s capex programme—making them lower-volatility alternatives to broad market exposure in a risk-off environment. However, the research house does not assign specific price targets for the local stocks mentioned, so investors should conduct their own valuation work before committing capital.

Key Takeaways

• AI infrastructure remains in favour: Malacca Securities Research maintains conviction in Nvidia and Bloom Energy, citing strong Q2 results and a USD25 billion power-financing deal as proof of sustained capex cycles in data centre buildout.
• Geopolitical headwinds weigh on regional sentiment: The FBM KLCI is expected to trade softer in line with Wall Street’s retreat, though the Energy sector gained 1.47% on higher oil prices.
• Local defensive plays identified: According to Malacca Securities Research, SPRITZER and LWSABAH stand to benefit from Indonesian haze-driven bottled water demand, while MNHLDG gains from TNB’s 500km transmission grid project.
• Oil price dynamics offer tactical opportunity: Malacca Securities Research notes energy counters could attract short-term traders if crude remains elevated near USD95/bbl amid Iran–US escalation.
• No near-term slowdown in AI capex: The research house emphasises that chipmaker earnings beats and structural power-infrastructure deals signal the AI deployment cycle is still in its growth phase, contradicting recessionary narratives.

Full Report: This article summarises the research published by Malacca Securities Research (M+ Online) on 2 September 2026. For the complete analysis, including detailed valuations and risk factors, visit https://mplusonline.com/research-report/detail/1412.

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.

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