AI demand has left the world short of high-end drill bits used to make advanced circuit boards, which is good news for maker Kinwa and its pricing power.

• Kinwa says demand for top-grade drill bits has outrun supply since last year, and the five biggest makers still can't expand fast enough.
• AI servers and optical networking are driving orders for advanced circuit boards, which need far more precise drilling.
• Prices should keep climbing, helped by shortage and by rising tungsten costs.
• Kinwa is lifting monthly output sharply into next year, aiming for record full-year revenue and a better year after that.

Outlook: Kinwa expects business to build month by month, with next year stronger than this one as new capacity comes online.