NationGate, tech stocks rally amid US plan to ban data centre components from China

KUALA LUMPUR (Aug 5): Technology stocks rose and dominated trading activities on Bursa Malaysia amid news of proposed US ban on Chinese data centre components.

NationGate Holdings Bhd (KL:NATGATE) surged as much as 13 sen or 10% to RM1.42. The stock was also fourth most active on Wednesday, as analysts pointed out that the electronic manufacturing services firm is poised to benefit from the plan to prohibit import of Chinese-made optical transceivers into the US.

“We see this development as incrementally positive for NATGATE should the proposed restrictions eventually be implemented,” Kenanga Investment Bank said.

Inari Amertron Bhd (KL:INARI), which added 20 sen or over 9% to RM2.41, could also benefit through its optoelectronics segment that accounted for more than one-third its total revenue, the research house noted. It was the second most actively traded stock of the day.

The Trump administration is now drafting the ban to protect the infrastructure that undergirds the artificial intelligence (AI) boom, Reuters reported citing four people familiar with the matter.

Officials at the Federal Communications Commission, which oversees the US ‌telecom industry, hope to publish it this year when it would take effect, the news agency said.

For Hong Leong Investment Bank, the planned move will further accelerate the ‘China+1’ supply chain relocation to Southeast Asia and strengthen trusted-origin manufacturing capacity in Malaysia.

Neither US optical technology vendors Coherent and Lumentum has sufficient capacity to fully offset displaced Chinese suppliers that account for more than half of the global optical transceiver production, the research house added.