Summary of the Conference Call on the PCB Industry Industry Overview - The PCB industry is experiencing a demand upgrade driven by AI technology, leading to a shift towards high-layer and HDI (High-Density Interconnect) boards, which require advanced drilling techniques such as laser drilling for micro-blind holes and mechanical drilling for through-holes [1][8] - The global PCB market value remains stable at approximately $70-80 billion, with multilayer boards accounting for 40% of this value, while the share of HDI boards is rapidly increasing [1][5] - China is the dominant player in new capacity expansion, benefiting domestic equipment manufacturers the most [1][5] Key Market Trends - The fastest-growing application for PCBs is in AI servers, projected to grow over 30% globally in 2024, with a market size exceeding $10 billion [1][6] - AI servers require more layers (over 20 layers), leading to increased prices and processing difficulties, which in turn raises the demand for advanced PCB technologies [1][7] - The PCB production process involves critical steps such as drilling, plating, etching, lamination, and forming, with drilling equipment representing the highest value segment at approximately 20% [1][10] Equipment and Technology Insights - The drilling equipment market is valued at around 10 billion RMB, with a significant share held by China, reflecting its importance in the sector [13] - The market for drilling needles is also experiencing growth, with the market share of DingTai High-Tech increasing from 19% in 2020 to 30% in 2025, driven by increased PCB material consumption and enhanced value from AI [14] - The electroplating segment is crucial for ensuring conductivity between layers, with the global market size estimated at 5-6 billion RMB, and China accounting for 80% of this market [15] Market Opportunities and Challenges - The exposure equipment market in China is relatively small, with a size of approximately $556 million, indicating significant room for replacement and growth [16] - PCB testing equipment, including optical and functional testing, represents about 10% of the global market, with a domestic market size nearing $500 million, suggesting further potential for market expansion [17] Notable Companies in the Industry - Key players in the PCB industry include: - Dazhu CNC in the drilling segment - DingTai High-Tech and Zhongtung High-Tech in the drilling needle market - New Flag Microelectronics in exposure equipment - Dongwei Technology in electroplating equipment - Emerging companies like Dier Laser are also expanding their presence in related fields, with reasonable valuations and potential for growth as downstream demand increases [18]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: inTest Corporation (INTT) Analysis - inTest Corporation (INTT) has shown a four-week price change of 0.4%, indicating growing investor interest [4] - The stock has gained 17.4% over the past 12 weeks, with a beta of 1.55, suggesting it moves 55% more than the market [5] - INTT has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - INTT has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.73, suggesting it is undervalued at 73 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides INTT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]