On June 9, GigaDevice (03986.HK) rose 3.31% in regular trading, trading at HK$719.0/share, with trading volume of HK$246 million. The stock rebounded after consecutive sessions of heavy selling pressure triggered by Broadcom's earnings miss that rattled global chip stocks.
On the news front, FTSE Russell announced on June 3 that GigaDevice will be added to the FTSE China A50 Index, with the change becoming effective after market close on June 18 (June 22). Passive fund accumulation ahead of the inclusion date is providing buying support. The stock had previously fallen over 6% on June 5 and continued declining on June 8 amid broader semiconductor weakness.
Fundamentally, the company reported explosive Q1 results with revenue of RMB 4.188 billion (up 119% YoY) and net profit of RMB 1.461 billion (up 523% YoY), driven by severe supply-demand imbalances in 2D NAND and legacy DRAM markets. Counterpoint data showed global NAND market revenue surged to a record US$46 billion in Q1, nearly doubling quarter-over-quarter on AI demand. Multiple institutions maintain buy ratings with storage chip price increases expected to persist throughout the year.
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