Nikkei: AI fever led by Nvidia causes technology stocks in Vietnam and a neighboring country to skyr
Investors are betting on tech stocks fueled by the Nvidia-led AI craze.
AI-related stocks in Southeast Asia, especially those of companies partnering with Nvidia, have soared thanks to growing demand for generative AI.
FPT's stock price reached 118,000 VND in mid-March, the highest level since its listing in 2006. The closing price on Thursday was 114,900 VND/share, up about 60% from a year ago and 20% compared to with the end of 2023
The increase is driven by cooperation between FPT and chip giant Nvidia. Last December, Nvidia founder Jensen Huang visited Malaysia, Singapore and Vietnam and announced partnerships with the companies.
FPT announced its cooperation with Nvidia at a conference on semiconductors and artificial intelligence in Hanoi in December. Speaking at the event, FPT Chairman Truong Gia Binh said: “AI and chip manufacturing are a key factor to catch up with other developed countries and participate more deeply in the global supply chain."
Meanwhile, Malaysia's YTL Power International also benefits from cooperation with Nvidia. Subsidiary YTL Corp. The infrastructure major saw its share price close at 3.99 ringgit (21,000 VND) on Tuesday, up more than fourfold from a year ago and 60% from the end of last year.
CEO Jen Huang announced the partnership with YTL Power after meeting with Malaysian Prime Minister Anwar Ibrahim. The two companies will cooperate in building AI infrastructure at a data center in the south of the country.
YTL earned $360 million in net profit in the second half of 2023, an increase of 4.8 times over the same period last year. Sales also increased by 15%. This result was driven by the company's power generation business in Singapore.
FPT also saw net profit increase 20% last year to 7.78 trillion VND (310 million USD). The company's global information technology services business is growing in Japan, Europe and other markets.
Malaysian semiconductor assembly company Inari Amertron is also performing strongly on the stock market. Amid tensions between the US and China, many companies have diversified their supply chains by shifting part of their information technology and semiconductor production to Vietnam and Malaysia. According to Statista, Vietnam's semiconductor industry is expected to grow 30% from now to 2027.
According to international industry group Semi, global semiconductor production capacity is expected to grow 6% this year and hit near an all-time high. Although chip supply performance has been volatile recently, demand is expected to pick up thanks to the recovery in the silicon cycle.
Leading Southeast Asian startup stocks such as Grab and GoTo are lackluster due to difficulties in achieving sustainable profits. Instead, investors have bet on AI investments from established tech companies in the region.
