AI-Led Recovery Prompts CIMB’s Upgrade of Malaysian Tech Stocks
- Sector gauge peaked at 57 times forward earnings previously
- Inari, Malaysian Pacific Industries preferred sector picks
CIMB Securities Sdn. upgraded Malaysia’s technology shares to overweight from neutral on improving earnings visibility led by growing demand for artificial intelligence.
The sector “has entered a new upcycle with a potential for valuation re-rating,” CIMB analyst Mohd Shanaz Noor Azam wrote in a report on Thursday. “We expect to see a stronger utilization pick-up, especially from the second half of 2024 onwards.”