On the 10th, Sungho Electronics surged in intraday trading by more than 27%. The stock appeared to be buoyed by news that it acquired ADSTech, which supplies optical module alignment equipment to Mellanox, a subsidiary of Nvidia.
As of 9:42 a.m. that day on the KOSDAQ market, Sungho Electronics was trading at 6,400 won, up 1,390 won (27.74%) from the previous transaction day. The share price of Sungho Electronics hit the upper price limit for two consecutive days starting on the 8th, and remained strong that day as well.
Sungho Electronics disclosed on the 8th that it would acquire ADSTech. ADSTech, founded in 2000, is a manufacturer of optical module alignment equipment. It aligns the lens, chip, and optical fiber inside optical transceivers, a core module of optical communication equipment for artificial intelligence (AI) data centers.
ADSTech counts Mellanox, a subsidiary of Nvidia, as a major customer. More than 90% of ADSTech's sales last year reportedly came from Mellanox.
Meanwhile, there are only two corporations worldwide that manufacture optical module alignment equipment: ADSTech and PICONTECH. Among them, PICONTECH was acquired by a Chinese company last year.