PETALING JAYA: Technology companies’ momentum is expected to remain intact in the second half of 2026 (2H26), supported by robust supply chain order flows amid elevated artificial intelligence (AI) infrastructure spending, an improving earnings growth trajectory, and positive management guidance, says RHB Research.
The brokerage has maintained an “overweight” call on technology stocks, adding that recent ground checks across the technology supply chain reinforce its high-conviction view of a firm upcycle underway.
It said this upcycle could well extend into 2027 supported by robust factory loadings, expanding order books, and bullish customer forecasts amid accelerating AI demand and recovery across other segments.
“We expect most technology companies to deliver stronger year-on-year and quarter-on-quarter (q-o-q) earnings, underpinned by healthy backlogs, high loadings, steady project execution and accelerating billings. The positive earnings trajectory should extend into 2H26, supported by the seasonal ramp-up in the second half and a favourable q-o-q foreign exchange tailwind,” it added.
It said the rapid adoption of generative AI and hyperscale data centres (DCs) “is driving structural demand for advanced packaging, power semiconductors and high-speed networking, as the ramp-up in compute intensity and rack power densities create critical power, thermal and bandwidth bottlenecks”.
It has a “buy” call for Malaysian Pacific Industries
Bhd and a target price of RM50.70.
