ZJK Industrial (NASDAQ: ZJK) shares skyrocketed on Tuesday after the tech parts supplier revealed that it has expanded its collaboration with NVIDIA Corp (NASDAQ: NVDA). Through the enhanced collaboration, the Chinese nuts and bolts company will be providing the American computer hardware giant with liquid cooling systems for its AI infrastructure.
NVIDIA wants samples of these systems to start with. ZJK just revealed that it is assembling a specialized team to focus solely on developing them. If the initial samples are deemed to be suitable, NVIDIA may require a large quantity.
“The expansion of our cooperation into liquid cooling systems provides our company the opportunity to demonstrate the breadth of our capabilities, the strength of our R&D teams and the quality and versatility of our engineering,” chief executive, Ning Ding, said in a statement.
Before the development, ZJK supplied NVIDIA with its metal fasteners and other parts. It produces nuts, bolts, screws and other components needed for mobile phones, smart wearables, electric vehicles, drones, circuit boards, data centres and more.
ZJK was founded in 2011 and is headquartered in Shenzhen, China. It completed its initial public offering on Sept. 30, raising US$6.25 million. A portion of this funding will be used to help set up a new foundry, potentially located in Vietnam.
ZJK’s revenue rose by 17.2 per cent year-over-year in 2023 at US$29 million.
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ZJK has an impressive client roster
In addition to NVIDIA, ZJK is known to have a supply agreement with BYD Company ADR (OTCMKTS: BYDDY) — a major player in the electric vehicle industry.
The renowned Chinese drone manufacturer DJI is a valuable client too. It relies on the company’s parts for construction of its unmanned aerial vehicles.
Also GoerTek Inc (SHE: 002241), a renowned electronics company; Samsung Electronics Co Ltd (KRX: 005930); and the Swiss technology supplier Garmin Ltd (NYSE: GRMN).
The global market for fasteners like those that ZJK produces is currently worth over US$75 billion.
rowan@mugglehead.com
