Singapore-listed InnoTek sees shares soar 36% on Nvidia contract win
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InnoTek subsidiary Magix Mechatronics (Dongguan) Company has secured initial precision machining orders for components used in Nvidia products.
PHOTO: REUTERS
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SINGAPORE - Shares of Singapore-listed InnoTek surged after the precision metal parts manufacturer said on Oct 13 that it secured contracts to supply components for artificial intelligence (AI) chip giant Nvidia.
Its shares jumped on the news, soaring 36.4 per cent, or 20 cents, to close at 75 cents on Oct 13.
InnoTek also said it has been approved as a “recommended vendor” for Nvidia and China’s IEIT Systems as at September.
InnoTek’s subsidiary Magix Mechatronics (Dongguan) Company secured initial precision machining orders for components used in Nvidia products, with production expected to commence in the fourth quarter of financial year 2025, the group said.
It added that it has been “proactively engaging” Nvidia – which manufactures high-end graphics processing units (GPUs) essential for training and running AI models – by delivering prototypes to support its AI server platforms and data centres.
Meanwhile, another InnoTek subsidiary, Sun Mansfield Manufacturing (Dongguan) Company, was awarded a new project by IEIT Systems, a provider of data centre and cloud computing infrastructure listed on the Shenzhen Stock Exchange.
IEIT is part of the Chinese state-owned Inspur Group, which is the country’s largest server manufacturer and one of the top global suppliers by market share, InnoTek said. Inspur Group designs, develops and manufactures high-performance servers, storage systems and AI computing platforms, with customers in more than 120 countries.
InnoTek expects the production of metal casings and components for GPU unit servers for IEIT Systems to commence in October.
Mr Lou Yiliang, chief executive officer of InnoTek, said that the company is investing in various high-end precision equipment to support Nvidia and other AI projects. This will provide InnoTek with additional capacity and allow it to build on its track record in the GPU space to secure new opportunities, he added.
“Over the past two years, the group has been proactively engaging new customers in AI-related fields, while investing in new product development for GPU server products, such as advanced GPU server chassis and liquid-cooling systems, in response to growing demand across sectors such as artificial intelligence and cloud computing,” InnoTek said.
