Hong Teng Precision Stock Surges 6% on NVIDIA's 73% Data Center Revenue Growth

Hong Teng Precision, a precision components supplier for data center equipment, saw its stock price surge by over 6% during midday trading. This significant increase was driven by the release of NVIDIA's latest financial report, which showcased a remarkable 73% growth in its data center revenue for the first quarter of fiscal year 2026. This segment now accounts for 88% of NVIDIA's total revenue, underscoring the company's dominance in the AI and high-performance computing market.

NVIDIA's CEO, Jensen Huang, announced that the company's AI supercomputer, Blackwell NVL72, designed for inference, has been fully deployed in production by system manufacturers and cloud service providers. This development further solidifies NVIDIA's position as a leader in AI hardware solutions.

Following the resolution of technical issues that had caused delivery delays, NVIDIA's suppliers, including Foxconn and Dell, have accelerated the production of its flagship AI data center "racks." Industry insiders revealed that these partners have made significant breakthroughs, enabling them to commence the shipment of the highly anticipated "Blackwell" AI servers.

Hong Teng Precision, which had been grappling with server rack overheating issues, has successfully implemented solutions to address this challenge. By resolving this technical problem, the company has not only enhanced the performance and reliability of its products but also strengthened its reputation as a trusted supplier in the data center industry. This development has contributed to the positive market sentiment surrounding Hong Teng Precision, driving its stock price higher.

The growth in NVIDIA's data center revenue and the resolution of technical issues by its suppliers underscore the rapid evolution of the technology sector. As businesses increasingly adopt AI technologies, the demand for advanced data center solutions is expected to remain strong. This trend presents substantial opportunities for companies like Hong Teng Precision, which are well-equipped to meet the growing demand for precision components in the data center industry.