Kingboard Holdings' stock surged 7.05% during Thursday's intraday session, extending a strong rally in the PCB sector.

The sharp rise is driven by multiple catalysts. A conflict in the Middle East has disrupted operations at the Saudi Jubail industrial zone PPE resin plant, threatening approximately 70% of the global supply of high-end PCB core materials. Concurrently, robust demand from the AI sector is providing a tailwind, with Morgan Stanley research indicating that PCB costs for NVIDIA's next-generation VR200 AI chip have surged over 233% compared to its predecessor.

Further bolstering sentiment, Kingboard's subsidiary, Kingboard Laminates, has implemented its fourth price hike this year, raising board material prices by 10% and PP products by 20%. The positive sector momentum was reinforced by gains in peers like KB Laminates. Analyst confidence remains high, with Citi recently raising its target price for Kingboard Holdings to HK$90, maintaining a Buy rating, and significantly revising its earnings forecasts upward for the coming years.