Xin Hing Surges Back to NT$1,000 Club on Nvidia Optical Module Order

Taiwanese PCB maker Xin Hing is riding high on a major order for Nvidia's next-generation Rubin GPU, a deal that has propelled its stock back into the four-digit price range. The company secured a substantial order for optical module PCBs, utilizing an mSAP process. This upgrade for Nvidia's GPU involves a significant structural enhancement, increasing PCB layers from 22 to 26 and upgrading the copper-clad laminate material to M8.5.

Xin Hing's stock surged on the news, briefly challenging the daily limit and reclaiming its spot among companies trading above NT$1,000. As of mid-morning, the stock was up 6.92% at NT$1035, with over 17,600 shares traded. This surge follows a period of consolidation and reflects strong investor confidence.

The company's financial performance has been robust, with May consolidated revenue reaching a new high of NT$14.06 billion, up 0.91% month-on-month and 32.37% year-on-year. Cumulative revenue for January-May stands at NT$65.439 billion, a 26.75% increase year-on-year. Analysts anticipate a favorable pricing cycle for ABF substrates, which is expected to significantly boost profits for substrate manufacturers like Xin Hing. The company's production lines are operating at full capacity due to pre-orders from clients, with demand projected to increase by 40%-50% in the second half of the year as AI products enter mass production.