GIGADEVICE (03986) saw its shares rise more than 5% during the trading session. At the time of writing, the stock was up 2.74%, trading at HK$367.80 with a turnover of HK$498 million.

On Thursday afternoon Beijing time, Kioxia released its annual performance guidance, which significantly surpassed market expectations. The company's revenue and net profit targets were approximately 35% to 60% higher than analysts' predictions. Kioxia stated that in the flash memory market, server demand for data centers and enterprise-level AI applications is expanding, while demand for PCs and smartphones remains strong due to the launch of new AI models. The company emphasized that due to a substantial increase in data center demand, it anticipates that demand will outstrip supply. Influenced by this news, SanDisk and Micron Technology saw sharp increases during the U.S. night trading session.

It is worth noting that the global AI competition is intensifying, driving a surge in demand for memory chips. Market analysis indicates that due to massive investments by large technology companies, the tight supply-demand situation for semiconductors is expected to persist until 2026. Analysts at Deutsche Bank stated that the tight supply of DRAM is likely to continue until 2027 or even 2028, particularly as the AI boom has spurred a sharp increase in demand for high-bandwidth memory (HBM). Tianfeng Securities pointed out that GIGADEVICE is a platform-based chip design company benefiting from the convergence of three favorable trends: AI, domestic substitution, and the upward cycle in the memory market. The company is expected to have strong growth momentum and resilient performance in the forecast period.