Circuit boards displayed at the Victory Giant booth at an expo in Shanghai. VCG/Getty Images via Bloomberg
BEIJING: While clashes between the United States and China over tariffs and trade restrictions have been a dominant theme in the technology world, this year’s hottest Asian stock demonstrates how the nations still rely on each other.
Shares of Victory Giant Technology (Huizhou) Co are up nearly 600% so far this year, topping the MSCI Asia Pacific Index, lifted by ties to its key customer Nvidia Corp.
The Chinese maker of printed circuit boards is seen as having a niche in artificial intelligence (AI) applications and the ability to rapidly meet customer needs.
Furthermore, it stands out against other recent top stock performers that underscore the divide between US attempts to onshore tech production on one side and China’s push to bolster self-reliance on the other.
“Victory Giant Technology’s recent surge highlights how critical US-China relations remain to the global tech ecosystem,” said Gerald Gan, deputy chief investment officer at Reed Capital Partners.
“While both sides continue to compete in advanced chip development, the reliance on Chinese manufacturers for essential hardware components shows that full separation is impractical in the near term.” — Bloomberg
