GIGADEVICE (03986) saw its shares decline more than 5% during early trading. At the time of writing, the stock was down 5.4%, trading at HK$35.4, with a turnover of HK$164 million.
The drop follows a noticeable softening in spot prices for DDR5 memory modules since last week. For example, the mainstream 32GB DDR5 module was widely quoted at around RMB 3,000 per unit last week, but prices have fallen significantly this week, with reductions ranging from RMB 500 to RMB 1,050. Some merchants have reportedly cleared part of their inventory at RMB 2,500 per module, while others have offered "fire-sale" prices as low as RMB 1,950, indicating nervousness among distributors.
Reports suggest that while an increasing number of upstream distributors are willing to sell, the market has not warmed up despite the price cuts. Since the memory price surge began in the fourth quarter of last year, many individual consumers have held back on purchases, opting for lower-capacity memory or turning to the second-hand market, which has dampened sales volume. Many distributors noted that last year’s price increases significantly hurt business, with transaction volumes generally declining, which is a key reason for the recent price corrections.
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