Technology Sector Faces Profit-Taking, Long-Term Outlook Remains Positive

February 22, 2026
Sector Analysis
The Edge Markets

Malaysia's technology sector experienced profit-taking on Friday, with key players like Inari Amertron falling 1.5%. Despite the short-term pullback, analysts believe the global semiconductor cycle recovery will underpin long-term growth prospects.

Malaysia's technology sector faced profit-taking pressure in Friday's trading session, leading to declines in several key tech stocks. Among them, Inari Amertron fell 1.5% to RM3.55, while Malaysian Pacific Industries (MPI) also recorded a slight dip. Analysts noted that it is a normal market behavior for investors to lock in some profits after a recent strong rally. Despite the short-term pullback, the market remains optimistic about the long-term recovery prospects of the global semiconductor industry. The continuous development of Artificial Intelligence (AI) and 5G technologies is expected to drive demand for semiconductor components. Local tech companies, as key players in the global supply chain, are well-positioned to benefit from this trend. Investors should monitor upcoming earnings reports for further industry insights.
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