On July 3, GigaDevice Semiconductor (03986.HK) fell 3.71% in regular trading, trading at 955.5 HKD/share with turnover of HKD 577 million, extending the prior session's sharp selloff.

The decline continues to reflect market panic over AI computing power oversupply after Meta announced plans to launch a cloud infrastructure business selling AI computing resources to external customers. The market interpreted this as a signal that AI capital expenditure has peaked. On July 2, the Philadelphia Semiconductor Index plunged 6.27%, Micron crashed 10.57%, and GigaDevice itself fell over 15% in Hong Kong trading with a limit-down in A-shares.

Adding to headwinds, GigaDevice had previously issued risk warnings noting its trailing P/E of 200x significantly exceeds the industry average of 129x, and that niche storage chip prices are at historical highs and unsustainable. The company cautioned that as mainstream memory manufacturers re-enter the niche storage market, product prices face considerable downward pressure ahead.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)