China’sMegmeetGoesLimitUpAfterBecomingPa

China’s Megmeet Goes Limit Up After Becoming Parts Supplier for Nvidia’s Blackwell Chip

TANG SHIHUA

DATE:  OCT 18 2024

China’s Megmeet Goes Limit Up After Becoming Parts Supplier for Nvidia’s Blackwell Chip

(Yicai) Oct. 18 -- Megmeet Electrical's shares jumped by their daily trading limit after the Chinese maker of automated electrical equipment and software said it will provide power components for Nvidia’s forthcoming high-performance Blackwell chip.

Megmeet [SHE: 002851] closed 6.2 percent higher at CNY30.78 (USD4.33) a share, after climbing by as much as 10 percent intraday, extending the stock’s gain so far this year to 38 percent. The benchmark Shenzhen Component Index advanced 4.7 percent today.

Megmeet will provide innovative power systems and solutions for Nvidia's Blackwell GB200, the Shenzhen-based firm announced late yesterday. The move will likely benefit the company's future turnover, it added.

The Blackwell GB200 is mainly used for high-performance computing, specifically artificial intelligence inference and training. It integrates the Blackwell GPU with Grace central processing unit to push the performance and efficiency boundaries of large-scale artificial intelligence models.

Megmeet, a leading supplier of power solutions for communications equipment and servers, launched its power system product for the Nvidia MGX platform at the Open Compute Project Global Summit, held in San Jose from Oct. 15 to yesterday.

The volume of components supplied will be subject to the agreement, Megmeet pointed out, without disclosing further details, such as how much revenue it expects to receive from the deal. The partnership with Nvidia will help enhance Megmeet's brand influence and its business development, the firm added.

Megmeet had revenue of CNY2.1 billion (USD298 million) from its power product business last year, accounting for 31 percent of the total, according to the firm’s annual earnings report. Its power supply products are used in communications gear, servers, medical equipment, photovoltaics, energy storage, charging piles, and many other industrial applications.

Editor: Martin Kadiev