ZJK Industrial stock tumbles after retraction of production ramp-up announcement

Investing.com -- Shares of ZJK Industrial Ltd (NASDAQ:ZJK) fell sharply by 16.7% following the company’s retraction of a previous statement regarding its production increase to support Nvidia (NASDAQ:NVDA)’s B40 project. The initial press release had suggested a significant uptick in year-over-year revenue growth, driven by the new partnership with Nvidia.

However, ZJK Industrial has now advised stakeholders to disregard the earlier announcement made on June 5, 2025, that it would be ramping up production. This retraction has raised concerns among investors, leading to a notable drop in the company’s stock price during the trading session.

The now-discounted statement had detailed ZJK Industrial’s plans to enhance its manufacturing capabilities to meet the demand for Nvidia’s B40 chip, a customized AI accelerator targeted at the Chinese market. CEO Ning Ding had expressed high expectations for the project, forecasting shipments to exceed one million units by the end of 2025 and emphasizing the growth potential in the AI sector.

The news of the cancellation of the production ramp-up comes as a surprise to the market, which had previously factored in the anticipated revenue growth into ZJK Industrial’s stock valuation. Without the expected contribution from the B40 project, investors are reassessing the company’s future revenue projections and growth trajectory.

The sudden shift in company strategy underscores the volatility and unpredictability inherent in the high-tech manufacturing sector, particularly when collaborations with major industry players like Nvidia are involved. The incident serves as a reminder of the importance of cautious optimism when it comes to corporate announcements, especially those that have the potential to significantly affect a company’s financial outlook.

As the market reacts to this development, ZJK Industrial’s focus will likely shift to its other business segments and potential avenues for growth. Investors will be watching closely for the company’s next move and any updates on its long-term strategy in the wake of this retraction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.