Advertisement
A 30% rally in BOE Tech shows how AI buildout can galvanise Chinese LCD maker
Chinese maker of LCD displays sees a surge in its share price following an attempt to diversify into AI with US manufacturer Corning
3-MIN READ3-MIN
Listen
Zhang Shidongin Shanghai
BOE Technology is on investors’ radar screens again after announcing its foray into a business linked to artificial intelligence infrastructure, causing the stock price of the Chinese maker of liquid-crystal displays (LCDs) to rally following years of listlessness.
Yuan-denominated shares of the world’s biggest LCD maker have surged more than 30 per cent in Shenzhen over the past week after the company said last week that it would partner with Corning, the US manufacturer of optical fibres and cables, in the fields of glass-substrate packaging, optical interconnects and foldable glass.
Investor reaction was so enthusiastic that BOE had to quickly issue a clarification to downplay the effects of the business collaboration on short-term earnings. That followed its shares surging by 10 per cent on two consecutive days last week, the maximum daily swing allowed by the Shenzhen exchange.
BOE’s sudden jump shows how AI can lift an old-economy company almost forgotten by investors and thrust it back into the limelight. The company fits well into the evolving narrative of the global AI trade, where investors are shifting to companies that stand to benefit from the AI infrastructure buildout, ranging from optical fibres to memory chips and printed circuit boards.
Select Voice
Select Speed
1x
AI-generated voice