HK Stock Market Move | GigaDevice Semiconductor Inc. (03986) rose more than 7% to hit a new high during trading hours, benefiting from an upturn in the storage cycle.

GigaDevice Semiconductor Inc. (03986) rose more than 7% in early trading, reaching a high of 295 Hong Kong dollars, setting a new record high. As of the time of writing, it is up 5.07% at 285.8 Hong Kong dollars with a trading volume of 3.6 billion Hong Kong dollars. According to a research report by Morgan Stanley, the traditional storage chip supply-demand gap is continuing to widen, and the industry is expected to enter a new super cycle from the second quarter of 2025 to 2026. Supply shortages of products such as DDR4, DDR3, NOR Flash, and SLC/MLC NAND are intensifying, with no pessimistic reasons in the market. The report also mentions that the strong demand for advanced process storage products (such as DDR5, HBM) is squeezing mature process capacity allocation. In January 2026, top companies are actively procuring DDR4, and due to supply constraints, prices in the first quarter may increase by up to 50%. It is reported that GigaDevice Semiconductor Inc. held the top market share in China for NOR Flash, SLC NAND Flash, and niche-type DRAM products in 2024. EB SECURITIES previously mentioned that GigaDevice Semiconductor Inc. is a leading domestic niche storage company, poised to benefit from the upward trend in storage cycles, with a diversified product lineup expected to further open up incremental space.