On Friday at 11:12 AM (Bangkok time), the share price of Delta Electronics (Thailand) Public Company Limited (SET: DELTA) contracted by 4.13% or THB 2.50 to THB 58.00, with a trading value of THB 646.23 million.
Hana Microelectronics Public Company Limited (SET: HANA) declined by 4.82% or THB 0.80 to THB 15.80, with a trading value of THB 89.94 million.
KCE Electronics Public Company Limited (SET: KCE) fell by 4.32% or THB 0.70 to THB 15.50, with a trading value of THB 52.93 million.
Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET) lost 3.70% or THB 0.20 to THB 5.20, with a trading value of THB 117.15 million.
KGI Securities (Thailand) upholds recommendation for traders to avoid investments in the Thai electronics sector following Microsoft’s decision to delay or halt the development of data centers in several regions, including the United Kingdom, Australia, North Dakota, Wisconsin, and Illinois, as reported by Bloomberg.
While Microsoft’s strategy to pause or cancel certain data center projects may not necessarily indicate an AI bubble, it might represent a move to rebalance or prioritize to ensure a balanced supply and demand. Microsoft still plans to invest around $80 billion by 2025.
Nevertheless, the analyst views Microsoft’s move as a warning sign that growth in the data center sector might slow down, noting the importance of future demand for data centers.
Additionally, there could be negative sentiment towards the electronics sector due to concerns that AI adoption may be slower than previously anticipated by the market. The sector also remains at risk from tariff increases imposed by U.S. President Donald Trump.
