NVIDIA Concerns Weigh on YTLPOWR; CGS Says Sell-Off Overlooks Colocation Value

C.R. Lee · November 11, 2026

AI-assisted, reviewed by C.R. Lee

CGS International analyst Dharmini Thuraisingam believes YTL Power International’s recent sell-off is excessive. NVIDIA-related concerns and AI chip supply-chain scrutiny have added pressure given the group’s collaboration with the chipmaker. She maintained “Add” and her RM6.50 target price, implying 36.3% upside, following a 21% share-price decline since end-September.

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Dharmini argues that investors should distinguish its colocation business from its AI data-centre ambitions. Her valuation assumes 850MW of colocation capacity, with 298MW already contracted, and assigns no material value to a successful AI-business ramp-up. AI-related setbacks would therefore have limited direct impact on her current forecasts and valuation, although prolonged NVIDIA uncertainty could still weigh on sentiment.

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She notes that neocloud and hybrid operators’ EV/EBITDA valuation multiples have contracted approximately 37% since end-September, compared with just 5% for colocation peers. This relative resilience supports her view that YTL Power’s colocation value has been overlooked.

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Separately, The Edge reported on November 10 that YTL Power faced selling pressure amid scrutiny of NVIDIA following reports of chief executive Jensen Huang’s relationship with a suspected Chinese spy. The woman was linked to Singapore-based Megaspeed International, a company involved in the AI-chip allegations.

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Speedmatrix is Megaspeed’s Malaysian subsidiary. YTL Power’s connection to the market concerns is through its own cloud and data-centre partnership with NVIDIA. The Edge noted that there were no credible reports linking YTL Power to either Megaspeed or Speedmatrix, distinguishing the sentiment spillover from any direct involvement in the allegations.

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As of 10:08 a.m. on November 11, YTL Power International’s share price rose 1.7% to RM4.77, after falling 6.4% in the previous session.

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