GIGADEVICE (03986) surged more than 10% again. As of the time of writing, the stock was up 10.59%, trading at HK$35.5, with a turnover of HK$256 million. On the news front, GIGADEVICE previously issued a performance forecast, anticipating 2025 revenue of approximately RMB 9.2 billion, a year-on-year increase of around 25%. The company expects to achieve a net profit attributable to shareholders of about RMB 1.61 billion, marking a surge of roughly 46% compared to the previous year. The company's performance growth is primarily attributed to significantly increased demand driven by the accelerated construction of AI computing power. Its products targeting the PC, server, and automotive electronics sectors are deeply benefiting, while the memory industry cycle is steadily improving. Optimized supply-demand dynamics are driving both the price and volume of products higher. China Merchants Securities released a research report stating that since global memory prices began recovering and rising in the first half of 2025, spot and contract prices accelerated their increase in Q3-Q4 2025. It has recently been observed that the sequential price increases for various memory categories in Q1 2026 have exceeded expectations. The report forecasts that the global memory supply will remain generally tight throughout 2026. The growth in AI demand continues to outpace the speed of capacity expansion. Furthermore, due to factors like capacity squeeze and panic stockpiling downstream, price increases for other consumer-grade and niche memory products are also far exceeding conventional levels. Multiple segments of the domestic memory industry chain are expected to benefit from this wave of shortages and price hikes this year.
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