Overview
Market attention that had centred on semiconductors and equipment makers is now cascading down the supply chain to the materials that form the physical backbone of every server and motherboard. A Hong Kong manufacturer at the heart of that production has seen its share price explode in recent weeks after a pair of major corporate actions: a sizeable capital raise via a stake sale in a laminate subsidiary and continued product price increases aimed at tight market conditions.
The standout performer
One company in particular has dominated the headlines within this materials wave. Kingboard Holdings (SEHK:148) rallied sharply this month, gaining an astonishing +135.43% after unveiling two significant announcements in quick succession: a HK$11.77bn - approximately $1.5bn - stake sale in its laminate unit, and its fifth product price increase in 2026. ProPicks AI first identified Kingboard in February 2025; since that initial selection the company’s shares have surged a cumulative +612.12% over the 16 months that followed.
What the company makes and why it matters
At the core of modern printed circuit boards is FR-4, a sheet composed of woven glass fibre bonded with epoxy resin and copper foil. It is the standard laminate used under the majority of circuit boards around the world. Kingboard is among the largest global producers of FR-4 laminate and also manufactures key inputs for that product: copper foil, glass fabric, and epoxy resin. The company sources more than 70% of its own raw materials and operates in excess of 60 factories across China and Thailand.
Revenue reached $5.5bn in 2025. In response to evolving demand, Kingboard has added higher-spec products tailored for AI applications this year, including HVLP3 copper foil and ultra-thin VLP copper foil designed specifically for GPU motherboard and IC substrate packaging in AI servers. The implication is that virtually every server rack being deployed in current data-centre builds contains materials the company supplies.
How the recent rally unfolded
ProPicks AI selected Kingboard in February 2025 at a time when the broader electronics sector was emerging from a prolonged downturn. Data available to the model signalled tightening laminate supply and an inflection in AI server demand, together with a company structure that offers vertical integration and considerable pricing leverage once demand rebounded.
That rebound has been pronounced. Kingboard implemented five separate price increases across FR-4 and related PP products in 2026 alone - each move attributed to persistently higher copper costs and constrained glass cloth availability. Concurrently, the company is scaling capacity in Thailand, growing output from a starting point of 600,000 sheets per month toward a stated target of 1.8 million sheets. The HK$11.77bn stake sale in the laminate subsidiary is earmarked entirely for PCB capacity expansion and research and development.
These developments - repeated pricing actions, explicit capacity expansion targets, and a sizeable capital injection dedicated to scaling and R&D - combined to accelerate the market’s revaluation of the stock.
Where the fresh capital is headed
The roughly $1.5bn raised from the subsidiary stake sale will be ploughed into capacity growth and product development. The company has maintained the five price increases implemented so far in 2026, and management’s product pivot toward premium, AI-focused laminates and copper foil is described as a multi-year shift. With committed funding, ongoing capacity ramp plans, and demonstrated pricing power across its portfolio, the data-driven thesis that attracted the model’s initial selection has strengthened since February 2025.
Wider market context - gains up and down the stack
Kingboard is one example of a broader rotation that is hitting materials, equipment, and infrastructure segments. ProPicks AI had positions across multiple tiers of the AI build-out before recent moves became apparent in the market.
Within the same month, other global names have shown substantial gains:
- AlRajhi Takaful (SASE:8230) - +104.76% in June alone
- Dian Swastatika (IDX:DSSA) - +74.80% in June alone
- Tokyo Electron (TSE:8035) - +45.74% in June alone
- Megaport Ltd (ASX:MP1) - +43.28% in June alone
ProPicks AI and InvestingPro members were positioned in several of these names ahead of their June rallies.
Equipment and components
Tokyo Electron, which makes manufacturing equipment rather than materials, has also benefited from the AI-led cycle. The company reported record Q4 2026 revenue of ¥2,443.5bn and is forecasting more than 20% growth in global semiconductor equipment spending in both 2026 and 2027. Management notes AI chip demand accounts for roughly 40% of total sales and is still accelerating. Tokyo Electron also authorised one of the largest buyback programmes in its history - a JPY 150bn repurchase equal to up to 7.5 million shares.
Connectivity and cloud infrastructure
Megaport, which operates a software-defined network across more than 1,100 data centres in 31 countries, is another example of infrastructure catching up with compute demand. Following its November 2025 acquisition of compute provider Latitude.sh, Megaport has been constructing a Globally-Distributed AI Inference Cloud to make GPU capacity available directly through its network. Core network annual recurring revenue reached A$277.7m in April, up 25% year-on-year; the company closed a fully underwritten A$827.3m raise in June to fund further development.
Power and regional infrastructure
Dian Swastatika (DSSA) operates across coal, power generation, data centres, and internet services, and it now hosts the Nusantara Lima satellite - described here as the highest-capacity satellite in Asia and operational. Within Southeast Asia, the company’s energy and digital assets form part of the underlying infrastructure facilitating regional AI adoption.
U.S. market performers this month
In the U.S., multiple listed companies tied to AI-related infrastructure and components also produced strong monthly returns. A sample of June movers includes:
- Marvell Technology (NASDAQ:MRVL) - +41.54% in June alone
- Veeco (NASDAQGS:VECO) - +39.13% in June alone
- Onto Innovation (NYSE:ONTO) - +30.52% in June alone
- Amneal Pharmaceuticals (NASDAQGS:AMRX) - +25.66% in June alone
- Allegro MicroSystems (NASDAQ:ALGM) - +25.19% in June alone
More than 20 double-digit rallies were recorded across the month in the broader set of AI-focused and infrastructure-related equities.
What the selection process targets
The ProPicks AI approach evaluates thousands of global equities each month, applying a combination of historical performance data, valuation signals, and forward-looking growth indicators. The engine processes over 15 years of financial history across more than 150 quantitative models to identify up to 20 high-conviction stocks per strategy based on projected medium-term upside potential.
Selections are subject to a monthly rebalancing process. The strategy adds new opportunities, retains strong performers, and removes stocks that no longer meet the defined criteria. To keep performance tracking consistent, the strategy assigns equal weighting to all selected stocks; investors may choose different allocations, but equal-weighting provides a transparent benchmark for model performance.
Since the official launch of the AI models in November 2023, the disciplined process has compounded into a cumulative return of +227.24%, which the models report as outpacing the S&P 500 by +150.15% over the same period. Those returns reflect the model-only performance after launch and the specific monthly selections and rebalances executed since November 2023.
Implications and next steps
With capital dedicated to capacity and R&D expansion, repeated price increases in place, and a product mix shifting toward premium AI-oriented laminates and copper foil, the case for continued market attention on this segment has strengthened. The same demand driver - AI server deployment - is working its way through materials, equipment, connectivity, and power, producing notable price action across the entire stack.
Investors monitoring this rotation will be watching execution on capacity ramps, the durability of pricing actions, and the effective deployment of the $1.5bn raised for expansion. These factors will determine whether recent gains represent a durable re-rating or a shorter-term repricing tied to near-term supply tightness.
Note on access
ProPicks AI’s monthly stock selections and the precise rationale behind each pick are provided to members through subscription services. Members received the updated global stock list for June ahead of many of the market moves referenced here.