GIGADEVICE shares tumbled 5.14% during intraday trading on Wednesday, extending the stock's recent weakness as multiple headwinds continue to pressure the memory chip designer.

The sharp decline comes amid a massive capital siphon effect from the debut of CXMT (ChangXin Memory Technologies) on the STAR Market just two days earlier. CXMT's first-day surge exceeded 465% with turnover surpassing 1,400 billion yuan, drawing significant liquidity away from the broader storage sector. Adding to investor concerns, GIGADEVICE founder Zhu Yiming simultaneously serves as the head of CXMT, fueling market anxiety over potential competition and management distraction between the two companies.

Further weighing on sentiment, Morgan Stanley recently issued a warning that memory prices are approaching a peak, casting a shadow over the sector's near-term outlook. Meanwhile, the lingering impact of China Life's asset management plans collectively selling approximately 1.11 million shares for around 682 million yuan in proceeds continues to suppress the stock's performance.