Chinese Tech Stock Victory Giant Surges 600% on Nvidia AI Chip Demand Amidst US-China Tensions

Victory Giant Technology (Huizhou) Co., a Chinese manufacturer of printed circuit boards (PCBs), has experienced a remarkable surge of nearly 600% in its stock price year-to-date, leading the MSCI Asia Pacific Index. This performance is largely attributed to its role as a key supplier for Nvidia Corp., a leading designer of artificial intelligence chips, specializing in PCBs essential for AI applications. This underscores continued US-China interdependence in tech despite trade restrictions. Gerald Gan of Reed Capital Partners noted that full separation is impractical. Although recent uncertainty over Nvidia chip sales in China caused a temporary dip, AI infrastructure demand remains robust. Victory Giant's ability to rapidly scale production and invest in capacity has been crucial, distinguishing it from other suppliers. Founded in 2006 and trading on the Shenzhen Stock Exchange, the company also plans a significant Hong Kong listing. Its third-quarter results showed a 260% rise in net income and a 79% jump in sales. Analysts remain overwhelmingly positive, with a consensus 'buy' rating. Impact This news highlights the critical nature of specialized component suppliers within the booming AI sector and the complex global tech supply chains. It signals strong investor interest in companies enabling major technological shifts like AI. The resilience of supply chains, despite geopolitical pressures, suggests continued opportunities for well-positioned manufacturers. Rating: 7/10

Difficult terms: Printed Circuit Boards (PCBs): Electronic components that support and connect electronic parts using conductive tracks etched from copper. Artificial Intelligence (AI): Simulation of human intelligence processes by machines. MSCI Asia Pacific Index: Stock market index representing large/mid-cap equities across 21 Asia Pacific markets. Onshore tech production: Manufacturing technology products within a country's own borders. Hyperscalers: Large cloud providers scaling infrastructure rapidly. Pick-and-Shovel: Companies providing essential tools/services for an industry, not the main product. High-density interconnect (HDI) and multi-layer PCBs: Advanced PCBs allowing complex circuitry in smaller spaces. Shenzhen Stock Exchange: Stock exchange in Shenzhen, China. Hong Kong listing: Offering shares for trading on the Hong Kong Stock Exchange. Consensus price target: Average price target set by financial analysts.