(Bloomberg) -- Malaysian utility firm YTL Power International jumped to a record high after its announcement of a partnership with Nvidia Corporation to build a 20 billion ringgit ($4.3 billion) artificial intelligence data center in the Southeast Asian country.
YTL Power extended gains by as much as 5% on Monday to the highest since the company’s listing in 1997. The group confirmed the deal after markets closed on Friday, when shares climbed 6.6%.
The company, which owns Singapore’s YTL PowerSeraya and water assets in the United Kingdom, will work with Nvidia to build an AI infrastructure that will bring the fastest supercomputers to Malaysia by the middle of 2024. The announcement coincided with Nvidia Chief Executive Officer Jensen Huang’s maiden visit to the country, where he also met Prime Minister Anwar Ibrahim.
“YTL Power’s earnings growth should strengthen upon the successful delivery of the project delivery in the long run,” RHB Research analyst Sean Lim wrote in a report. Still, “investors ought to take note that additional capex requirements ahead could be rather intensive.”
The company’s parent, YTL Corporation, also rose, bringing its two-day gains to about 20%. Both stocks have rallied over 200% this year and are poised to join Malaysia’s stock benchmark FBM KLCI Index on Dec. 18.
