VGT shares surged 5.19% during intraday trading on Friday, extending a strong rally that saw the stock gain over 13% in the previous session. The sharp move higher reflects growing investor optimism around the company's positioning in the AI-driven PCB supply chain.

The surge was fueled by a significant month-over-month price increase of 17%-18% in electronic-grade glass fiber cloth for the 1080 series in August, marking the largest monthly jump year-to-date, with cumulative gains hitting 118%-165%. Robust AI demand has prompted manufacturers to reallocate capacity from non-AI to AI-related fiberglass products, further tightening overall industry supply. Major CCL producers are also expected to initiate a new round of price hikes of approximately 10%-15%, adding to the positive sentiment.

VGT previously confirmed that certain high-end PCB products have entered mass production, with orders fully booked, and its Huizhou Factory 4 is in a steady capacity ramp-up phase. JPMorgan has highlighted VGT as a direct beneficiary of NVIDIA platform upgrades from Blackwell to Rubin/Rubin Ultra, maintaining an Overweight rating and a 500 HKD target price on the stock.