InnoTek Limited (M14.SI) saw its stock price soar by 6.36% in pre-market trading on Monday, following the company's announcement of new partnerships with major tech firms. The precision component manufacturer has been approved as a recommended vendor for both NVIDIA Corporation and IEIT Systems, a subsidiary of China's Inspur Group.

According to the company's statement, InnoTek's subsidiary Magix Mechatronics (Dongguan) Company Limited has secured initial precision-machining orders for components used in NVIDIA products. Production for these components is scheduled to commence in the fourth quarter of fiscal year 2025. Additionally, another subsidiary, Sun Mansfield Manufacturing (Dongguan) Company Limited, has received a project from IEIT to supply metal casings and components for GPU servers, with production set to begin in October 2025.

To support these new ventures and potential future AI-related projects, InnoTek has announced plans to invest in additional high-end precision equipment to expand its production capacity. This strategic move into the booming AI hardware sector appears to have resonated positively with investors, driving the significant uptick in the company's stock price.