TLDR
- Victory Giant stock dropped 6% before recovering with an 8.7% gain in Hong Kong.
- Social media allegations directed at Chairman Chen Tao sparked significant selling pressure.
- Management stated that the allegations had no impact on operations or corporate governance.
- Hong Kong trading volume surged to HK$1.28 billion during the session.
- The company maintains its position as a critical Nvidia supplier for AI server PCB production.
Victory Giant Technology experienced dramatic share price movements across consecutive trading days following social media allegations involving its chairman. After declining 6% on Monday, the stock surged 8.7% on Tuesday to finish at HK$361.2. The fluctuations occurred after a social media post generated substantial trading activity in both mainland China and Hong Kong exchanges.
Social Media Allegations Spark Dramatic Price Movements
The selling pressure initiated on June 6 when a Douyin account published allegations concerning Chairman Chen Tao. Video content from the user circulated through various investor communication channels ahead of the June 8 trading session. Mainland shares consequently declined 6.06% to 318.33 yuan, while Hong Kong shares began the day 7.65% lower at HK$336.
Hong Kong exchange activity reached HK$1.28 billion in trading volume, demonstrating substantial investor response. The stock reversed course the following session, advancing 8.7% to close at HK$361.2. The recovery occurred after management released official statements addressing the situation.
Victory Giant clarified that the allegations bore no connection to daily operations or governance structures. Company officials emphasized that the claims remained separate from manufacturing processes, production oversight, or management functions. President Zhao Qixiang informed National Business Daily that the circulating reports lacked complete accuracy and confirmed that authorities had been notified.
An Investor Relations communication dated June 7 characterized Chen Tao as “an acknowledged technical expert in the PCB sector.” The filing reiterated that the situation fell below disclosure requirements under applicable reporting standards. Management confirmed that standard business operations proceeded without disruption.
AI Infrastructure Position Maintains Investor Attention
Victory Giant produces sophisticated printed circuit boards deployed in AI servers and supercomputing systems. The manufacturer delivers components for accelerator boards, server backplanes, and networking equipment integrated into Nvidia platforms. Market observers maintain close attention on the stock given its AI infrastructure connections.
Based on its 2025 Hong Kong listing documentation, the company achieved the highest global revenue position in AI and HPC PCB manufacturing during the initial half of 2025. The firm captured a 13.8% market share across these categories. Victory Giant also noted achieving early volume production of sixth-generation HICs featuring 24-layer circuits designed for AI server applications.
While the company maintains confidentiality regarding client-specific revenue breakdowns, analyst projections suggest high single-digit to low double-digit revenue exposure to Nvidia-associated demand. These projections encompass accelerator boards and networking infrastructure deployed by hyperscale operators and original design manufacturers. AI infrastructure spending forecasts therefore shape valuation assessments.
Industry analysis indicates that AI-specialized PCB manufacturers command forward multiples ranging from mid-teens to low twenties. Traditional PCB producers typically receive higher single-digit to low-teens multiples. Despite recent semiconductor sector volatility, market participants continue evaluating Victory Giant based on anticipated AI demand expansion.
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