Growth prospects still good for tech companies

For exposure to the sector, the brokerage preferred Unisem (M) Bhd for its organic growth as well as increased operational efficiency following the recent closure of its operations in Batam, Indonesia, at end-March 2020. TA noted the Batam operation closure would see Unisem’s long-standing drag on overall earnings removed. (File pic UNISEM factory)

PETALING JAYA: The medium-to long-term growth prospects for the semiconductor sector remains intact, thanks to emerging technologies.

However, the upside for local technology stocks is likely limited, as the valuations of most these companies have already reached their fair levels, according to TA Research.