GIGADEVICE's stock price soared 5.13% during intraday trading on Wednesday, marking a significant upward movement.

The rally was primarily driven by Morgan Stanley significantly raising its target price for the company, from 348 RMB to 585 RMB. Analysts cited a widening supply-demand gap in the storage industry for the second half of the year, fueled by capacity reductions from major players like Micron and SK Hynix, coupled with robust and growing data center demand. This is expected to lead to a projected 20% rise in DDR4 prices in the third quarter.

Fundamentally, the company's explosive first-quarter earnings, with net profit surging 521.7% year-over-year and gross margin reaching 57.1%, provided further support for the positive sentiment. The movement occurred alongside broader gains in the semiconductor sector.