GIGADEVICE's stock price soared 5.52% in early trading on Friday, continuing its recent strong performance as the market reassesses the company's value.

The surge is primarily driven by the ongoing catalyst from ChangXin Memory Technologies' (CXMT) initial public offering. CXMT recently updated its IPO prospectus, revealing a staggering 719% year-over-year revenue growth for the first quarter and a net profit surge of over 1,688%. The company further guided for a first-half net profit between RMB 50 to 57 billion, representing growth exceeding 2,244%. GIGADEVICE holds a 1.8% stake in CXMT, and the companies share a chairman, indicating deep strategic ties.

Furthermore, the two firms are deeply integrated within the supply chain, with GIGADEVICE projecting RMB 5.71 billion in DRAM-related procurement from CXMT this year. GIGADEVICE itself reported robust first-quarter results, with revenue rising 119% to RMB 4.19 billion and net profit jumping 523% to RMB 1.46 billion, supported by storage chip supply shortages and expanding demand for its microcontroller units amid the ongoing DRAM super-cycle.