KUALA LUMPUR – Malaysian technology and data centre-linked stocks came under pressure as Nvidia’s leadership crisis deepened following the resignation of its co-founder Jensen Huang, while the government clarified that Singapore-based Megaspeed International and its Malaysian affiliate, Speedmatrix Sdn Bhd, have not been cleared amid investigations into possible AI chip re-exports.
The developments have heightened investor concerns over Malaysia’s exposure to the global artificial intelligence (AI) supply chain, particularly companies involved in server assembly, semiconductor manufacturing and data centre infrastructure.
The Investment, Trade and Industry Ministry (MITI) said it was working with the Royal Malaysian Customs Department to determine whether AI chips brought into the country had subsequently been re-exported in compliance with Malaysian laws.
The clarification came as Nvidia grappled with a leadership crisis involving allegations of multiple extramarital relationships involving Huang, including two women linked to the company’s wider business network and a third unidentified employee.
Technology and data centre-linked counters under pressure
The uncertainty weighed on several segments of Bursa Malaysia’s technology and data centre ecosystem, including AI server assemblers, semiconductor-related companies and firms involved in supporting data centre infrastructure.
Among the counters watched closely by investors were electronics manufacturing services providers, server assemblers, semiconductor packaging and testing companies, telecommunications operators and utility providers whose growth prospects are linked to Malaysia’s data centre expansion.
YTL stocks were among the biggest casualties.
YTL Power International Bhd (KLSE: YTLPOWR) and its parent company, YTL Corporation Bhd (KLSE: YTL), both came under heavy selling pressure amid their exposure to Malaysia’s AI and data centre sector.
Despite analysts noting that there was no credible evidence linking YTL Power to the alleged chip diversion involving Megaspeed, its shares plunged 8.14%, or 39 sen, to RM4.40, wiping approximately RM3.7 billion off its market capitalisation.
YTL Corp also declined 5.56%, or 11 sen, to RM1.87 as investors reacted to the controversy surrounding developments in Johor.
Electronics manufacturing services provider NationGate Holdings Bhd (KLSE: NATGATE), which assembles AI servers incorporating Nvidia components, fell 6.42%, or 12 sen, to RM1.75 at Thursday’s close (November 12).
Local GPU server distributor SNS Network Technology Bhd (KLSE: SNS) slipped 3.41%, or 1.5 sen, to RM0.425 as it also faced heightened scrutiny.
Its management has reiterated that all Nvidia servers procured by the company were deployed exclusively for domestic Malaysian data centre customers and were not re-exported overseas.
Broader concerns over US-China technology tensions and potential disruptions to global semiconductor supply chains also weighed on semiconductor-related counters.
Major outsourced semiconductor assembly and test player Inari Amertron Bhd (KLSE: INARI) declined 4.41% to RM2.17, while Frontken Corporation Bhd (KLSE: FRONTKN) slipped 1.60% to RM4.91 amid concerns over potential disruptions to global chip supply chains.
Telecommunications, utilities and construction firms also affected
The negative sentiment extended to companies involved in the wider data centre infrastructure ecosystem.
Telecommunications and fibre providers Telekom Malaysia Bhd (KLSE: TM) and TIME dotCom Bhd (KLSE: TIMECOM), alongside national utility Tenaga Nasional Bhd (KLSE: TENAGA), faced indirect pressure amid concerns that tighter scrutiny of advanced AI chip movements could affect the pace of future hyperscale data centre expansion.
Construction and property companies involved in developing data centre facilities were also caught in the broader sell-off.
These included Sunway Construction Group Bhd (KLSE: SUNCON), Gamuda Bhd (KLSE: GAMUDA), Mah Sing Group Bhd (KLSE: MAHSING) and Sime Darby Property Bhd (KLSE: SIMEPROP).
Mechanical and electrical contractors Critical Holdings Bhd (KLSE: CHB), KJTS Group Bhd (KLSE: KJTS) and MN Holdings Bhd (KLSE: MNHLDG) were similarly affected by concerns surrounding the sector.
Huang’s resignation throws Nvidia into turmoil
Huang, 63, resigned on November 12 from his positions as Nvidia’s president, chief executive officer and board member, effective immediately, following mounting controversy over allegations of extramarital relationships.
The company appointed its executive vice-president and chief financial officer, Colette Kress, as interim chief executive.
The resignation followed reports of two alleged relationships involving Huang that emerged over the preceding week.
In an email to Nvidia employees on November 8, Huang acknowledged being unfaithful to his wife, although he did not identify the person involved.
The first allegation concerned Alice Huang, a former executive associated with Singapore-based cloud computing company Megaspeed International.
US intelligence officials have reportedly suspected Alice Huang of acting on behalf of Chinese intelligence, an allegation Beijing has denied.
A second alleged relationship involving Nvidia’s healthcare vice-president Kimberly Powell surfaced on November 11, according to reports by The New York Times.
The controversy took another turn just hours after Huang’s resignation when Reuters reported that the former chief executive allegedly had an intimate relationship with another Nvidia employee, citing two people familiar with the matter.
Reuters did not identify the employee, whose alleged relationship with Huang brings the total number of reported relationships involving the former chief executive to three.
Nvidia declined to comment on the latest allegation, while Powell, Huang and a representative for the company’s board did not respond to requests for comment. Alice Huang could not be reached.
The allegations have unfolded alongside scrutiny of Nvidia’s relationship with Alice Huang and concerns over whether restricted AI chips may have been diverted through Southeast Asia.
The leadership upheaval has added uncertainty for investors given Nvidia’s central position in the global AI industry and its influence over semiconductor manufacturing, server assembly and data centre investments.
MITI says Megaspeed, Speedmatrix have not been cleared
Separately, Megaspeed International remains under scrutiny over allegations involving the acquisition and deployment of advanced Nvidia AI chips subject to US export controls.
MITI clarified on Friday that it had never cleared either Megaspeed or its Malaysian affiliate, Speedmatrix, dismissing suggestions that previous inspections of data centre facilities where the latter operated amounted to regulatory approval.
The ministry said Speedmatrix was a tenant at Malaysian data centres and that verification visits conducted at the facilities were part of its routine monitoring of the sector.
Such inspections should not be interpreted as company-specific clearance or endorsement, it said.
MITI also explained that Speedmatrix brought its own servers and AI chips into Malaysia for its operations.
While importing AI chips into the country does not currently require a permit or licence, the ministry said anyone seeking to export, re-export, transship or transit high-performance US AI chips from or through Malaysia must obtain prior approval.
The requirement has been in force since July 2025 under the Strategic Trade Act 2010.
MITI, in cooperation with the Royal Malaysian Customs Department, is investigating whether any chips brought into Malaysia by the companies were subsequently re-exported to other countries and whether those transactions complied with local laws.
The ministry warned that providing false information to Customs concerning such goods was a serious offence under the Customs Act 1967.
It also reminded companies against misrepresenting their dealings with government agencies.
MITI said Malaysia would conduct its own checks independently, in accordance with domestic laws and based on available evidence, while working with authorities in Singapore and the United States to strengthen safeguards.
Although Malaysia does not enforce unilateral export controls imposed by other countries, the ministry said companies operating locally were expected to take such restrictions into account when conducting international business.
“Malaysia welcomes investment in data centres and technology, but will not allow itself to be used to get around export controls,” it said.
The ministry added that stern action would be taken against any company found to have violated Malaysian law.
The investigation has drawn attention to Malaysia’s growing role as a regional hub for cloud computing, semiconductor manufacturing and AI infrastructure, particularly as multinational technology companies continue expanding their investments in Johor and other parts of the country. – November 13, 2026