GIGADEVICE (03986) shares climbed more than 4% in Monday's trading session, last up 4.15% at HK$512 with turnover reaching HK$808 million.

On the news front, KB Securities, a South Korean brokerage, stated on September 7 that memory chip markets are confronting a critical supply scarcity as artificial intelligence infrastructure spending expands at an unprecedented pace. Inventory levels at Samsung Electronics and SK Hynix have reportedly dropped to under 10 days of supply, pointing to a potentially significant shortfall in actual sellable inventory next year.

Adding to the momentum, OpenAI unleashed its strongest model yet, GPT-6 Astra, last week. Since Astra is built for more complex AI tasks, the market is increasingly betting on continued frontier model advancements to spur computing power demand, thereby underpinning demand for HBM, DRAM, and core GPU hardware.

Galaxy Securities' research report highlights optimism for GIGADEVICE's Q3 operational performance. Overseas manufacturers are persistently reallocating capacity toward HBM, sustaining the tight supply-demand dynamic for niche DRAM and mid-to-low density NOR Flash, with product prices holding at elevated levels. The company's inventory built from early wafer resource lock-ins and proactive stockpiling in the first half will fully unleash capacity flexibility, ensuring robust Q3 order deliveries. On a product-by-product basis, new memory products are ramping up volume quickly and remain the core profit driver. Meanwhile, the MCU segment continues to secure premium orders, contributing a steady second growth engine, with overall gross margins expected to hold firm.