Two local companies related to NVIDIA: one received orders and saw its stock price rise by over 30%, while the other is under investigation | Lianhe Zaobao

The Singapore-listed precision parts manufacturer InnoTek's subsidiary has received orders from the American chip manufacturer NVIDIA, leading to a surge in its stock price, which rose 36.36% on Monday, reaching a nearly three-year high. On the other hand, the local cloud computing service company Megaspeed has been accused of assisting Chinese technology companies in obtaining regulated NVIDIA artificial intelligence (AI) chips, violating U.S. export controls. The Singapore police confirmed to Lianhe Zaobao that they are investigating Megaspeed for suspected violations of domestic laws in Singapore. The police did not disclose which laws were allegedly violated. The local listed company InnoTek was included in NVIDIA's recommended supplier list in September. The company announced on Monday (October 13) that its subsidiary, Magix Mechatronics (Dongguan) Company Limited, located in China, has received orders from NVIDIA, with production expected to start in the fourth quarter of the 2025 fiscal year. InnoTek's stock price has risen over 60% this year InnoTek's stock was in high demand from investors following the news, surging 36.36% on Monday to close at SGD 0.75. Year-to-date, the company's stock price has increased by 66.7%. The announcement stated that InnoTek has been actively engaging with NVIDIA over the past two years, providing NVIDIA with AI server platforms and prototype samples related to data center deployment. InnoTek Group President Lou Yiliang said, "The group is investing in various high-end precision equipment to better support NVIDIA and other AI-related projects." Over the past two years, the group has also actively expanded its new customer base in AI-related fields and invested in the development of new products for graphics processing units (GPUs), including GPU server chassis and liquid cooling systems, to meet the growing demand in areas such as AI and cloud computing. Further Reading Analysis: The outlook for AI stocks is promising, but investors should be cautious of stock price volatility News: U.S. approves NVIDIA to export billions of dollars in chips to the UAE Another subsidiary of the group, Dongguan Taiyang Maosen Precision Metal, has recently received new orders from Shenzhen-listed company Inspur Electronic Information Industry (IEIT Systems). The company expects to start producing metal shells and components for GPU servers from October this year . Megaspeed claims to be a "strategic business partner" of NVIDIA InnoTek has been favored by the market due to receiving orders from NVIDIA, but another local company related to NVIDIA, Megaspeed, has received negative news. The Straits Times visited Megaspeed's office located in the Ocean Financial Centre and found that the company had already vacated the premises. (The Straits Times) The New York Times reported last Thursday (October 9) citing sources that the U.S. Department of Commerce is investigating whether Megaspeed assisted Chinese technology companies in obtaining regulated NVIDIA artificial intelligence chips. Megaspeed claims to be a company operating cloud computing services and is a "strategic business partner" of NVIDIA. Collaborating with NVIDIA allows it to access "cutting-edge products, services, and cloud computing capabilities." According to data from the Accounting and Corporate Regulatory Authority, this company was registered in Singapore in 2015 under the original name 7Road International, later renamed Megaspeed. The only director of Megaspeed is Singapore citizen Tan Yong Pong, and Swiftdata is the sole shareholder of the company. The Straits Times previously visited the company's office located in the Ocean Financial Centre and found that the company had already vacated the premises