Zhen Ding Denies Rumors of Nvidia Server Board Issues After Stock Plummets

Zhen Ding Technology, a key supplier for Nvidia's next-generation Vera Rubin server platform, experienced a sharp stock price decline, hitting its lower limit. The drop was attributed to market rumors alleging problems with the company's printed circuit board (PCB) components for the platform.

In response to the market speculation, Zhen Ding Technology issued a strong denial. The company clarified that its client's product development is progressing according to schedule and firmly stated that the circulating rumors are factually incorrect. Despite the stock's immediate reaction, the company asserted the integrity of its supply chain and product timelines.

The company emphasized its robust position in the high-end AI sector, noting long-term cooperation agreements with major clients for future AI products. Zhen Ding has increased its capital expenditure to NT$80 billion for the year, driven by significant growth in its server and optical module businesses, which are experiencing exponential increases. This segment, along with IC substrate business, is a key driver for the company's AI-related high-end applications.

Looking ahead, Zhen Ding anticipates continued growth in the second half of the year, bolstered by the peak season for consumer electronics product launches and the sustained demand for high-end AI applications. The server and optical module businesses are expected to benefit further as clients advance their high-end AI product introductions and mass production, maintaining a quarter-over-quarter growth trajectory throughout the year.

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Currently, the client's product progress is proceeding according to plan, and market rumors are not factual.