VITROX, UNISEM Lead Tech Rally on AI Demand

AI Optimism Pushes Bursa Tech Higher Amid Global Strength

The local bourse advanced on the back of surging artificial intelligence demand fuelling positive global semiconductor sentiment, with the Technology sector leading gainers. According to Malacca Securities’ latest research, breadth remained healthy with 678 gainers outpacing 458 losers, signalling broad-based appetite for equities despite mixed signals from Wall Street. Regionally, STRATUS and UNISEM spearheaded the rally while Health Care lagged, reflecting sector rotation into hardware and chipmaking plays betting on AI infrastructure buildout.

On the international stage, Malacca Securities noted that the Nasdaq climbed 0.5% to 27,244.3 points on tech strength, though the Dow fell 0.4% and the S&P 500 was flat, painting a bifurcated picture. Brent crude eased 1.09% to USD100 per barrel, consolidating at a key psychological level that could offer relief to energy-sensitive sectors if momentum holds.

VITROX: Record Revenue Backdrop for Machine-Vision Play

VITROX recorded 2QFY26 revenue of RM374.9m and profit-after-tax of RM84.5m—both marking record results according to Malacca Securities’ dataset. The research house is keeping a close eye on the counter ahead of the SMTA Penang Expo & Tech Forum, where VITROX is set to showcase its AI-driven machine-vision and inspection solutions to institutional and retail participants.

The company’s core exposure lies in semiconductor test and inspection equipment, a segment benefiting directly from the industrywide push to deploy AI chips across data centres and edge devices. Malacca Securities’ outlook for VITROX reflects confidence in near-term momentum fuelled by customer visibility on AI-related capital expenditure cycles, though valuation at premium multiples relative to peers warrants caution among value-conscious retail investors.

UNISEM: Semiconductor Recovery Play on 20% Revenue Growth

UNISEM posted 20.0% year-on-year revenue growth to RM570.1m in 2QFY26, demonstrating solid operational traction in a recovering semiconductor cycle. Beyond topline performance, the company proposed a RM742.0m private placement to fund capacity expansion, signalling management confidence in sustained demand visibility over the medium term.

According to Malacca Securities Research, UNISEM remains a core semiconductor recovery play positioned to capture upside from AI infrastructure deployment. The private placement underscores capital discipline while securing funding without diluting existing shareholders excessively, a factor the research house views positively for near-term cash deployment and earnings accretion.

VERDANT: Smaller-Cap Turnaround on Order Visibility

Malacca Securities maintains a target price of RM0.29 on VERDANT, citing improving earnings visibility underpinned by a RM63.0m outstanding order book and 4QFY26 net profit of RM1.5m. Though smaller in scale than VITROX or UNISEM, VERDANT exemplifies how selective buying interest can unlock value in industrial and specialty equipment names tied to semiconductor manufacturing support services.

Global Semiconductor Moat: ADI, Flex and ServiceNow in Focus

Beyond Malaysia, Malacca Securities highlighted Analog Devices (ADI) as a key bellwether, noting record 3QFY26 revenue of USD4.0bn with 4QFY26 guided to USD4.3bn. ADI’s USD1.4bn Alif Semiconductor acquisition adds AI-native capabilities to its portfolio, a structural advantage in the AI infrastructure cycle.

The research house also flagged Flex (FLEX) as well leveraged to AI infrastructure demand, while ServiceNow (NOW) with a target price of USD192.40 offers exposure to enterprise AI monetisation—its AI Annual Contract Value (ACV) surpassed USD1.0bn in 2Q26, a watershed moment for software-as-a-service players seeking to embed generative AI into workflow automation.

What This Means for Retail Investors

Malacca Securities’ outlook underscores two competing forces: robust AI-driven demand for semiconductors and machine-vision equipment versus macro headwinds from rising US Treasury yields approaching 5%, which pressures equity valuations across the board. Retail investors tracking local tech must weigh the cyclical recovery in semiconductor shipments against macro risk of slower-than-expected AI capex cycles or multiple compression if rates remain sticky.

The research house expects the FBM KLCI to trade on a mixed footing with buying interest likely to remain selective, meaning rotational rather than broad-based rallies may characterise the near term. For those seeking exposure, VITROX and UNISEM offer fundamental anchors in record revenue and capacity expansion plans, while VERDANT suits more aggressive value hunters willing to stomach volatility for order-book recovery.

Key Takeaways

• Tech sector strength: Malacca Securities notes 678 gainers versus 458 losers on Bursa, with STRATUS and UNISEM leading the charge on AI chip demand.
• VITROX milestone: Record 2QFY26 revenue of RM374.9m and PAT of RM84.5m position the machine-vision play favourably ahead of SMTA Penang Expo.
• UNISEM expansion: 20% YoY revenue growth to RM570.1m backed by a RM742.0m private placement for capacity buildout signals confidence in sustained demand.
• VERDANT upside: Malacca Securities’ RM0.29 target price reflects improving earnings visibility from a RM63.0m order book and 4QFY26 net profit of RM1.5m.
• Macro caution: US 10-year yields approaching 5% and mixed Wall Street signals temper enthusiasm, likely sustaining selective rather than broad-based rally momentum.

Full Report: This article summarises research published by Malacca Securities (M+ Online) on 2026-09-22. For detailed analysis, proprietary valuation models and complete recommendations, access the full report at https://mplusonline.com/research-report/detail/1439

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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