HK Stock Market Move | Store rising price trends or sustain Montage Technology (06809) up over 9% and GigaDevice Semiconductor Inc. (03986) up nearly 5%

Storage concept has seen a significant increase, as of the time of writing, Montage Technology (06809) has risen by 9.19%, closing at HK$221; GigaDevice Semiconductor Inc. (03986) has risen by 4.81%, closing at HK$427.2. On the news front, driven by the demand for computing power infrastructure and AI cloud, the demand for DRAM and HBM in AI servers is growing strongly. According to TrendForce's prediction, in the second quarter of 2026, driven by the dominance of AI and data center demand and the tightening supply of some terminal application products, the contract prices of general-purpose DRAM and NAND Flash will continue to rise, with quarterly increases of 58-63% and 70-75% respectively. CITIC SEC believes that current expansion of storage original factories faces both subjective and objective constraints, with effective capacity release in 2026 limited. It is expected that substantial release of new capacity will need to wait until the end of 2027 to 2028, and there is limited room for upward adjustment in supply growth during the process. In the Agent AI era, storage is the core, and the industry is heading towards a long-term cyclical shift. The surge in demand driven by AI and the mismatch of original factory expansion have led to shortages becoming normalized. It is expected that supply shortages will persist at least until 2027, with price hikes throughout 2026. The firm remains optimistic about the trends in the storage industry, expecting the industry to maintain a high level of prosperity.