Bright prospects for SkyeChip on agentic AI expansion

By the Editorial Team · Friday, September 25, 2026

SkyeChip Bhd is focusing on expanding its integrated circuit design capabilities in 2026, aiming for significant revenue and margin growth by 2027-2028, supported by technological shifts in high bandwidth memory and increased CPU demand from agentic AI. Despite these growth opportunities, HLIB Research has maintained a "hold" rating on the stock, citing a high valuation and the prolonged development cycles inherent in the IC design industry.

SkyeChip Bhd, a Malaysian integrated circuit (IC) design company, is positioned for growth focused more on expanding its capabilities this year rather than immediate earnings gains, according to a recent analysis by Hong Leong Investment Bank (HLIB) Research. The report highlighted the company’s ongoing development and strategic initiatives following its public listing in May.

HLIB Research noted that while the market maintains high expectations for SkyeChip’s future performance—with the stock trading around 64 times the projected mid-2028 price-to-earnings ratio—investors should temper expectations for short-term earnings growth. The nature of IC design involves lengthy development cycles, meaning that current announcements on design wins often reflect engagements and projects initiated well before the present date.

Since its listing, SkyeChip has strengthened its financial position and corporate profile, which analysts believe enhances the company’s ability to pursue new ventures. The bank views 2026 as a year primarily dedicated to capability expansion, setting the stage for more pronounced revenue growth and net margin improvements expected to materialize between 2027 and 2028. Management aims for a compounded annual revenue growth rate and net margin of around 30% each.

The company stands to benefit from technological shifts in high bandwidth memory (HBM) design, particularly as the base die transitions to advanced logic processes starting in 2026. This evolution is expected to increase opportunities for custom logic design providers like SkyeChip. Additionally, the surge in demand for central processing units (CPUs) driven by the rise of agentic artificial intelligence (AI) is seen as a key growth driver. The launch of Meta’s personal AI agent, Muse—which runs each agent on a dedicated virtual machine requiring significant CPU resources—exemplifies this trend. As agentic AI workloads expand, there is anticipated growth in demand for customized CPUs, potentially broadening SkyeChip’s customer base.

During a recent corporate briefing, SkyeChip management indicated plans to expand its intellectual property (IP) portfolio either by acquiring external expertise or developing capabilities internally. Among likely targets is the Serialiser/Deserialiser (SerDes) technology, which plays a critical role in high-speed data communication between chips and would complement the company’s current memory interface IP. Adding SerDes would allow SkyeChip to offer a more comprehensive interface IP suite encompassing on-chip, die-to-die, and off-chip connectivity, essential components in modern chip design.

Despite these growth prospects, HLIB Research has maintained a "hold" rating on SkyeChip’s stock, with an unchanged target price of RM2.85, based on a valuation of 61 times projected mid-2028 earnings. The stock last traded at RM3.07 per share.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.