Recently, market hotspots have been switching at an accelerating pace, yet one primary theme has delivered "steady gains"—memory chips. The memory chip sector has recently ignited a wave of limit-up stocks, such as Lanjian Electronics and Guidian Co., Ltd. on January 15th, followed by GIGADEVICE, Tongfu Microelectronics, and Jiangsu Changjiang Electronics Technology Co., Ltd. on January 16th.
Extending the timeframe reveals that, driven by a confluence of multiple factors, memory chips are embarking on a major, long-cycle uptrend of annual significance. The synchronized phenomenon of numerous individual stocks hitting limit-up and reaching new highs is gaining further momentum, suggesting the next strong performer in the memory chip sector may already be emerging.
The memory chip sector is exhibiting robust upward momentum, with a batch of stocks simultaneously hitting their daily limit-up and achieving new all-time highs. Taking data from January 16th as an example, nearly ten stocks, including GIGADEVICE, Tongfu Microelectronics, Jiangsu Changjiang Electronics Technology Co., Ltd., Saiteng Co., Ltd., Golden Sun, and Konfoong Materials International Co., Ltd., collectively surged by the 10% daily limit. Concurrently, nearly 30 stocks, such as GIGADEVICE, Biwin Storage Technology, Zhongke Feice, and Longsys, reached new historical highs.
Behind the powerful surge in individual stocks is the ongoing发酵 of the memory chip sector's long-term uptrend. Since hitting a low on April 9th, 2025, the sector has maintained a consistent upward trajectory for nearly a year, with the overall sector index doubling in value. The ability of memory chips to deliver this synchronized sector-wide (beta) and stock-specific (alpha) performance is underpinned by several core drivers, one of which is earnings realization.
Recently, earnings-driven rallies in memory chip stocks have been frequent. A prime recent example is Biwin Storage Technology, which, after disclosing on January 13th, 2025, an expected annual net profit increase of 427.19% to 520.22%, saw its stock price accelerate sharply, rallying 36% cumulatively from January 14th to January 16th.
Furthermore, a host of related companies have issued positive 2025 earnings pre-announcements (including reduced losses). For instance, Montage Technology announced on January 17th an expected net profit of 2.15 billion to 2.35 billion yuan, representing a year-on-year increase of 52.29% to 66.46%. From a secondary market perspective, the company's stock price recently exhibited a low-level, high-volume reversal breakout, climbing nearly 20% since the start of January. Qiangyi Co., Ltd. also released positive pre-announcement data.
Another critical driver for memory chips is the ongoing price increases. The trend of rising memory chip prices continues, and prominent institutions remain bullish on the outlook. For example, Morgan Stanley noted that in the flash memory sector, NOR Flash prices are expected to rise 20%-30% in the first quarter, with the涨价 trend potentially extending into the second half of 2026.
During the 2025 annual report pre-announcement window, capital is also flowing into companies that have not yet issued annual forecasts but demonstrated steady growth in their Q3 2025 reports. Examples mentioned earlier, like Jingsheng Electronics and Dinglong Co., Ltd., fit this pattern. Jingsheng Electronics reported a 21.70% year-on-year increase in Q3 2025 net profit, while Dinglong Co., Ltd. grew by 38.02%. Since January 5th to January 16th, their stock prices have risen 49% and 28%, respectively.
Beyond Jingsheng Electronics and Dinglong Co., Ltd., several other memory chip companies have experienced a positive "double play" of strong Q3 2025 earnings and rising stock prices, such as Changchuan Technology, Longsys, Jfeng Electronic, Anji Microelectronics, Advanced Micro-Fabrication Equipment Inc., and Shanghai Xinyang. Most of these stocks have led the market higher since January; for instance, Changchuan Technology's Q3 net profit surged 142.14% year-on-year, and its stock price climbed over 36% in January.
In addition to earnings realization, another significant driver for memory chips is capacity expansion. Many of these high-performing companies are actively expanding. For example, Tongfu Microelectronics disclosed a private placement plan on January 9th, 2026, aiming to raise up to 4.4 billion yuan to enhance capacity in areas like memory chip packaging and testing, automotive applications, wafer-level packaging, and high-performance computing. Specifically, the memory chip packaging and testing capacity expansion project has a total planned investment of 888 million yuan and is expected to add annual capacity for 849,600 wafers. The company's stock price established a rebound from its late-December 2025 lows, hit a 10% limit-up on January 16th, and continued rising intraday on January 19th to set a new historical high.
Another example is Hefei Chipmore Technology Co., Ltd., which previously indicated its entry into the DRAM packaging and testing business through a strategic investment in Xinfeng Technology and a strategic partnership with Huadong Technology. Leveraging Xinfeng Technology's deep technical expertise in DRAM packaging and testing, including PoP stacking technology, it was one of the earliest domestic testing providers for ChangXin Memory Technologies' LPDDR products. Hefei Chipmore's stock price recently confirmed a breakout from a turning point, rising 35% cumulatively since January.
Longsys is strengthening its layout through product matrix expansion. The company has stated it closely follows high-performance storage technology trends and has officially launched its SOCAMM2 product, with commercialization to proceed based on customer validation and market demand. Longsys's stock has also shown strong performance recently, soaring over 40% since January and surging 13.48% on January 16th to reach a new all-time high.
(Mentioned stocks are for analysis purposes only and do not constitute investment recommendations.)
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