GIGADEVICE (03986) surged more than 10%, reaching a high of HK$343.8 to set a new record high since its listing. As of the time of writing, the stock was up 10.46% to HK$338, with a turnover of HK$227 million. Overnight, U.S. stock SanDisk rose over 9%, also reaching a new all-time high. Major memory manufacturer Micron indicated that slow expansion of wafer fabrication plants and complex customer certification processes mean the current memory shortage is unlikely to ease before 2028. A Morgan Stanley report pointed out that in January 2026, leading enterprises are actively purchasing DDR4; due to supply constraints, its price increase in the first quarter could reach 50%, and the upward trend is expected to continue into the second quarter. Furthermore, the shift in production capacity towards DDR4 is also causing a severe shortage of high-density DDR3, which is driving performance growth for related suppliers. Public information shows that GIGADEVICE held the top market share in mainland China for both its NOR Flash and SLC NAND Flash products in 2024; it also held the second-largest market share for niche DRAM in mainland China in 2024. A previous research report from Everbright Securities noted that GIGADEVICE is a leading domestic enterprise in niche memory and benefits from the volume and price increases brought by the upward storage cycle; the company's diversified product portfolio is expected to further open up incremental growth space.
Comments