GigaDevice Semiconductor Inc. (03986) A shares have a cumulative deviation value of 125.60% in the daily closing prices within the past 30 trading days. There may be a risk of a quick drop in stock prices in the future.

GigaDevice Semiconductor Inc. (03986) announced that the company's A-share stock price has increased by 73.42% in the period from June 15, 2026 to June 29, 2026, over 10 consecutive trading days, and by 125.60% in the period from May 18, 2026 to June 29, 2026, over 30 consecutive trading days. The stock price has experienced a significant short-term increase, and there may be a risk of a rapid price decline in the future. As of June 29, 2026, the company's latest rolling price-to-earnings ratio is 200.17, significantly higher than the industry average of 128.83 for the "Integrated Circuit Design" sector (code: 45301010). The company's high price-to-earnings ratio poses a risk of overvaluation. The storage chip industry the company operates in has historically displayed significant cyclical fluctuations, and current product prices are at historical highs. The unsustainable trend of significant price increases will eventually lead to a rebalancing of industry supply and demand. In the future, with changes in macroeconomic conditions, industry cycles, market supply and demand relationships, and other factors, major product prices may experience a significant decline, negatively impacting the company's product prices and gross profit margins in the storage business, leading to a decrease in overall profitability and the risk of declining operational performance. The storage products the company currently operates belong to niche storage products, primarily serving diverse downstream markets beyond mobile phones, PCs, and servers, such as consumer, industrial, telecommunications, automotive, and other sectors. The current price increase of related products is mainly driven by the significant increase in demand for AI-related products in the mainstream storage market, leading international storage giants to shift their focus to this product area, indirectly benefiting the niche storage market due to supply shortages in the mainstream market. Unlike the mainstream storage market, the downstream demand in the niche storage market is relatively stable, and while the industry prices are rapidly rising, downstream demand has been somewhat suppressed. With the marginal increase in production capacity in the niche storage market, prices are expected to see a significant decline. The company operates on a fabless model in the current context of overall shortage of supply in the niche storage market, there is a risk of further tightening of supply from upstream chip manufacturers due to tight capacity. The company continues to expand its research and development and iterate new products in important areas like niche DRAM and 2D NAND Flash, but these areas have high technological content and long research and development cycles. There is a risk of unexpected delays in technology development and product upgrades, so investors are advised to invest rationally.