YTL Power International’s market valuation has plunged amid the turmoil at its US data centre partner Nvidia.
The multi-utility and infrastructure company saw over RM3 billion wiped off its market capitalisation yesterday when its shares fell over over 8% or 39 sen to RM4.40, following reports of another extramarital affair of Nvidia founder and CEO Jensen Huang, who quit his posts at the chipmaker yesterday.
Since US newspapers revealed his affair with an alleged Chinese spy at the end of October, YTL Power’s shares have dropped 18.2% from RM5.32 to RM4.35 today, erasing RM8.71 billion from its market valuation.
The stock closed 5 sen or 1.1% lower at RM4.35, giving it a market capitalisation of RM38.05 billion.
YTL Power operates Malaysia’s first Nvidia-powered AI data centre at the YTL Green Data Center Park in Kulai, Johor. The facility is equipped with some of the most advanced AI chips from Nvidia, the second most valuable company in the world behind Apple.
CGS International said the recent sell-off in YTL Power “appears excessive” as its colocation data centre business continues to support the group’s valuation.
The research house cited improving near-term earnings and longer-term growth prospects that it believes are not fully reflected in the share price.
“We believe it is important to distinguish YTL Power’s contracted colocation business from its broader AI data centre ambitions,” it said in a recent note.
CGS maintained its “add” rating with an optimistic target price of RM6.50, staying bullish despite pressure from Nvidia-related concerns and tighter scrutiny of AI chip supply chains.
The alleged spy, a senior executive of Singapore-based Megaspeed International, has been accused of helping entities circumvent US restrictions on imports of high-performance chips to China.
News reports say she facilitated the shipment of at least US$7.5 billion (RM30.6 billion) worth of Nvidia chips to Chinese firms.
Megaspeed, which has a Malaysian unit Speedmatrix Sdn Bhd, is now under investigation by the US and Singapore.
Malaysia is ready to facilitate any formal request to investigate Speedmatrix, said investment, trade and industry minister Johari Ghani yesterday.
However, he added the government has yet to receive any such request.
It was reported that Speedmatrix might have breached the country’s export restrictions.
YTL Power’s business covers power, water, telecommunications, and digital infrastructure sectors. It also operates in Singapore, Indonesia, Thailand, China, the UK, the Netherlands and Jordan. - FMT
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