Gigadevice Semiconductor Inc. (GIGADEVICE) rose over 4% in late trading. As of the latest update, it was up 4.16% to HKD 52.6, with a turnover of HKD 1.046 billion. According to a research report, China's memory industry across all segments is benefiting comprehensively, with March and April monthly revenues generally reaching record highs. Niche manufacturers in Taiwan are operating at full capacity, with contract prices rising multiple times. Shortages are particularly acute in segments like eMMC. Module manufacturers, driven by AI-fueled demand for high capacity, saw their Q1 2026 revenue hit a quarterly record high. There is a widespread view that shortages will persist until 2027. Niche manufacturers like Gigadevice Semiconductor Inc. reported significant year-on-year and quarter-on-quarter growth in both revenue and profit for Q1 2026. Module manufacturers Jiangbolong, Demingli, and Baiwei Storage all achieved high growth, setting new records for revenue and profit in Q1 2026, with average monthly profit reaching approximately CNY 1 billion, indicating a substantial leap in profitability. The report stated that the performance of companies across the memory industry chain in Q1 2026 was impressive. The implementation of binding long-term agreements provides significant assurance for the performance visibility and growth of memory companies. The current memory shortage continues to intensify, and supply is unlikely to increase substantially in a short period. It is anticipated that the supply-demand gap may persist until 2027, and the upward trend in memory contract prices is also expected to continue. The future market price trend and the sustainability of performance growth for companies across the chain remain key focal points.
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