On June 3, GigaDevice (03986.HK) rose 4.5% in regular trading, trading at 736.5 HKD/share, with trading volume of approximately 334 million HKD. The rally was driven by Morgan Stanley significantly raising its target price for GigaDevice from 348 RMB to 585 RMB.

The core logic behind the upgrade centers on the storage industry's supply-demand gap widening rather than narrowing in the second half — Micron's equipment relocation from Taiwan to the US is expected to reduce capacity over the next 2-4 quarters, while SK Hynix's Wuxi facility is further cutting DDR4 production. Meanwhile, data center demand continues to grow robustly, with Q3 DDR4 prices projected to rise by 20%.

Fundamentally, GigaDevice's Q1 earnings demonstrated explosive growth, with net profit surging 521.7% year-over-year and gross margin climbing to 57.1%, as the storage cycle's volume-price recovery continues to materialize. Within the Semiconductors sector, peers also traded higher, with SMIC up 3.29%, HUA HONG SEMI up 2.5%, MONTAGE TECH up 7.36%, and INNOSCIENCE up 6.76%.

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