Shares of Gigadevice (HKEX: 03986) and its A-share counterpart saw significant gains in afternoon trading. At the time of writing, the A-shares had hit their daily upside limit, while the Hong Kong-listed H-shares surged 14.4% to HK$84.2, with a turnover of HK$2.828 billion.

The price movement follows a recent report on spot memory price trends. According to the analysis, within the DRAM segment, demand for DDR5 is particularly robust. Meanwhile, tight supply and persistently high prices for DDR4 are leading some buyers to shift to DDR3, subsequently driving up prices for that generation as well. In the NAND flash market, spot prices have stabilized following a rise in contract prices for the second quarter of 2026, though overall trading activity remains subdued.

A securities research note highlighted that supply for DDR4 and LPDDR4 remains constrained. The report pointed out that Gigadevice, leveraging its solid relationship with ChangXin Memory Technologies (CXMT), is one of the few companies positioned to expand its DDR4 production capacity between 2026 and 2028.

Furthermore, the analysis suggests the company's customized DRAM products for automotive and AI applications are expected to begin contributing to profits in the second half of 2026. This development is seen as strengthening the company's strategic position in the high-value niche DRAM market and supporting a continued increase in its average selling prices.