Gigadevice (03986) rose more than 6% in Hong Kong trading. At the time of writing, the stock was up 6.01% to HK$313.8, with a turnover of HK$1.9 billion. The surge followed a strong overnight performance in the U.S. memory sector, where SanDisk jumped 10.65% and Micron Technology climbed 9.94%. Earlier, Morgan Stanley raised its price target for Micron to $450. Notably, the Chief Technology Officer of Samsung Electronics stated that the company expects robust demand for memory chips to persist not only through this year but also into next year, driven by artificial intelligence. A recent research report from Tianfeng Securities highlighted that Gigadevice is a platform-based chip design company benefiting from the convergence of three favorable trends: AI, domestic substitution, and an upward cycle in the memory market. The securities firm projected the company's revenue for 2025–2027 to reach RMB 9.203 billion, RMB 11.386 billion, and RMB 13.878 billion, respectively, with estimated net profits attributable to shareholders of RMB 1.610 billion, RMB 2.589 billion, and RMB 2.769 billion. Tianfeng Securities believes Gigadevice has strong growth momentum and resilient performance prospects over the forecast period.
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