In recent times, a surprising surge has been observed in the printed circuit board (PCB) sector of the Chinese stock marketThe excitement around this industry was notably palpable during recent trading sessions, particularly on January 9, 2024, when over twenty PCB companies recorded impressive stock price increases, with several reaching the maximum allowable limit of gains in a single dayThis sudden spike left many investors buzzing with curiosity about the underlying factors driving this remarkable moment.

At the core of this phenomenon lies more than just market speculation; it has been heavily influenced by a statement made by a well-known social media figureThis individual highlighted the immense value of PCBs, specifically referencing that a single NVL72 cabinet PCB is valued at approximately $171,000. Such figures are staggering when compared to other components in the tech ecosystem, as this valuation represents not only a competitive edge over CPUs but also a significant place just below GPUs in terms of monetary worth

It naturally raised questions and interest about the current and future prospects of the PCB industry.

Analyzing the situation from an industry standpoint, it is clear that since the onset of 2024, the PCB market's outlook has been progressively improvingSeveral research reports indicate that the demand for PCBs is rebounding robustly, fueled significantly by the surging requirements of artificial intelligence (AI). The ongoing evolution in AI applications, especially in large model training and continuous optimization processes, has created an unprecedented demand for PCB infrastructureThis trend is further enhanced by the rebound in consumer electronics, spurred on by short-term subsidy policies that are stimulating consumer purchasesThus, a clear path emerges where expectations for burgeoning demand in the coming years are strongly anchored on the advancement of AI technologies.

The increase in activity around PCB stocks during the trading day was fueled not just by speculation but by real events and developments within the industry

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For instance, reports indicated that the share prices surged by over 5% during one session before stabilizing above 4%. Such movements are directly tied to investor confidence, which had been reinforced by the aforementioned insights regarding PCB capabilitiesAs noted earlier, the importance of PCBs in complex systems, especially those designed for AI computations, cannot be overstated.

The integration of AI technologies requires modern computational infrastructures where PCBs play a critical roleAs highlighted by industry experts, advancements in architecture, particularly with the GB200 structure, promote a significant increase in PCB utilizationIn configurations that involve 72 GPUs, PCBs serve as the vital backbone linking these powerful processors and ensuring seamless communication and processing capabilities between componentsFurthermore, the use of NV Switch Trays for inter-GPU communication alongside powerful networking solutions like InfiniBand switches underscores the increasing reliance on advanced PCB designs.

As companies explore more extensive configurations, such as an interconnected cluster of eight racks, the value of PCB investments becomes exceedingly clear

The estimated value of PCBs in such setups can surpass three million yuan, with individual GPU PCB components valued collectively at nearly 0.53 million yuanSuch dramatic increases, which represent close to a 300% uptick in value compared to single-rack arrangements, are underscored by the integration of additional L2 layers and more sophisticated IB Switch networksTherefore, as industry standards evolve and clusters grow larger, the significance—and resultant value—of PCBs will only be amplified.

Turning the spotlight on international dynamics, Thailand has emerged as a key player in the PCB landscapeWith increasing investments and strategic initiatives aimed at establishing itself as the PCB manufacturing hub of Southeast Asia, Thailand's growth has been nothing short of meteoricThe Thai government, through its Board of Investment (BOI), has been actively incentivizing PCB production, providing various tax reliefs and support mechanisms to attract global PCB firms

They have introduced a five-year strategic proposal aimed at bolstering their PCB industry and have garnered interest through 95 submitted projects worth over 162 billion baht by 2024.

The main goals of these initiatives revolve around strengthening the key supply chain participants related to PCB manufacturingThese include firms involved in raw material production, such as copper laminate and flexible copper laminates, as well as those supporting the entire PCB production process—from lamination and drilling to electroplating and moldingThis strategic push to refine their PCB infrastructure is evidenced by the influx of Taiwanese and Chinese companies relocating their manufacturing operations to Thailand, demonstrating the competitive advantages in labor costs, real estate, and favorable tax conditions.

In light of this industry behavior, it is undeniable that a strong growth trajectory is expected in the PCB environment

Not only is there an observed increase in demand from AI-driven applications and advancements in consumer electronics, but also the expected penetration of intelligent driving technologies into more price-sensitive automotive markets is foreseen—an area poised to drive substantial PCB requirements in the coming years.

Leading market research firms predict that the PCB industry's future is brighter than ever, particularly in high-end applications associated with AIAccording to evaluations, the server segment, driven by the escalating need for high-capacity processing and advanced functionalities, is set to experience a compound annual growth rate (CAGR) of approximately 11.6%, reaching an impressive market size of $14.2 billion by 2028.

The orchestration of ongoing technological advancements heralds a new era for the PCB industryWhile the 5G rise from 2019 to 2021 redefined operational capabilities, it is anticipated that the ongoing wave of innovation spurred by AI will prove to be even more transformative and expansive in scope