AI hype: supply chain effects
The AI hardware landscape is defined by three key technologies: PCBs (printed circuit boards), HBM (High Bandwidth Memory) and CoWoS (Chip-on-Wafer-on-Substrate). PCBs are the precise signal nets in every system, from the GPU to the server-board. HBM is stacked high-speed memory that delivers enormous bandwidth and was introduced in 2013 as a JEDEC standard, with HBM4 as the current expansion stage in 2025. CoWoS is TSMC's advanced 2.5D packaging platform that densely interconnects logic chiplets and HBM over a silicon interposer – essential for modern AI accelerators.
Source: Own representation
Introduction & Context
The Chinese PCB manufacturer Victory Giant Technology (Ticker 300476.SZ) recorded in 2025 a year-to-date stock rally of nearly 600 percent. This development positions the company as a top performer in the MSCI Asia Pacific and is primarily driven by the perceived proximity to Nvidia. The extreme stock movement raises questions regarding procurement, pricing and planning in the AI hardware supply chain and highlights the role of narratives in the market. Bloomberg Current status & market development publicly available summary They confirm a performance of nearly 600 percent year-to-date, which places the company at the top of Asian stock markets. This development is largely driven by its role as an Nvidia supplier. Market portals such as Marketscreener show an increase of +598.5 percent since the beginning of the year and point to strong Q3 figures with net income growth of +260.5 percent YoY. The Stock listing and the ticker are verifiable through financial portals. The connection to Nvidia is supported by reports of a planned Hong Kong listing and the specialization in high-density multi-layer PCBs, which are needed in AI servers, ( SCMP). At the same time, bottlenecks in HBM and packaging (CoWoS) shape the supply chain. Nvidia emphasizes that packaging remains a bottleneck despite capacity expansion ( Reuters).
Source: marketingautomation.tech
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Analysis & Background
The strong reaction from suppliers like Victory Giant Technology is due to several factors. First, the value chain is tightly linked: Without HBM and CoWoS, AI platforms cannot scale. Each bottleneck shifts value to the components that are currently scarce ( Reuters). Secondly, narratives act as catalysts: A credible hint of Nvidia proximity is enough to direct capital into "pick-and-shovel" names – manufacturers of boards, memory, substrates – to ( Business Standard). Thirdly, the geopolitical corridor remains open enough for Chinese suppliers to participate in global cycles, despite export rules that influence product mix and capacity buildup ( Reuters). The technical bottleneck of advanced packaging (3DFabric/CoWoS) is illustrated by a TSMC-Clip factor that explains the price movements.
Source: de.statista.com
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Fact-check & Reactions
It is evidenced that Victory Giant has a year-to-date performance of nearly +600% in 2025, which Bloomberg and Business Standard is explicitly cited. The Q3 dynamics in revenue and earnings are also evidenced, with a net income growth of +260.5% YoY and a quarterly revenue of ~5.09 billion CNY, as Market portals show. Packaging and HBM remain bottleneck factors in 2024/25; Nvidia addresses the shift from CoWoS-S to CoWoS-L and remaining bottlenecks ( Reuters, Reuters). It remains unclear the exact revenue share with Nvidia, as the company has not published an official, detailed customer structure ( SCMP). The claim of an "Intraday +600%" is misleading, as the sources refer to performance since the beginning of the year ( Business Standard). Investment strategists see secondary beneficiaries like PCB manufacturers as a clean AI exposure with no single-chip risk ( Reuters).
Source: linkedin.com
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Implications & Recommendations
For procurement, this means that capacity assurance takes precedence over pure unit price optimization. Framework contracts with escalation clauses, multi-sourcing across PCB/HBM/Packaging and schedule buffers are crucial for risk reduction ( Reuters). In pricing, HBM and CoWoS bottlenecks act as cost drivers along the entire chain; benchmarks for HBM4 and packaging roadmaps should be regularly updated ( Wikipedia, TSMC). For context, it is advisable to first check official announcements and financial reports and then reconcile them with secondary sources and price reactions ( Yahoo Finance, Marketscreener). A Video explains briefly why packaging is a bottleneck, what is useful for cost and capacity planning. Open questions concern the concrete Nvidia revenue shares of PCB suppliers like Victory Giant, as verified figures are missing ( SCMP). Also, the growth rate of CoWoS capacity relative to AI demand in 2026/27 and the cost trend remain uncertain ( Reuters). The stability of demand for HBM4 in the competitive landscape between SK Hynix, Micron and Samsung is also an open question, as hard numbers are rarely public ( Wikipedia). The rally is less of a 'miracle' than a lever on real bottlenecks. Where HBM and packaging are in short supply, those who deliver precisely, quickly and reliably win. This requires a thorough examination of supplier relationships, early capacity assurance, and scenarios for price and lead-time shocks. It is crucial to distinguish between documented facts (YTD rally, bottlenecks) and narratives (vague 'Nvidia proximity'). Business Standard, Reuters, TSMC).