BlockBeats report: On June 29, GigaDevice issued an announcement warning of stock trading risks, noting that the memory chip industry in which the company operates has historically exhibited significant cyclical fluctuations. Currently, product prices are at historical highs, and further substantial price increases are unsustainable; supply and demand in the industry will eventually return to balance.
In the future, as multiple factors such as the macroeconomic environment, industry cycles, and market supply and demand dynamics change, the prices of major products may decline significantly. This would have a substantial negative impact on the pricing and gross profit margin of the company’s storage products, leading to a reduction in overall profitability and posing a risk of declining business performance.
The company’s current storage products are niche storage solutions, primarily serving a broad and fragmented downstream market outside of smartphones, PCs, and servers—such as consumer electronics, industrial, network communications, and automotive sectors. The recent price increases in these products are primarily driven by significant demand growth in the mainstream storage market due to AI-related needs, prompting major international memory manufacturers to shift their focus toward these high-demand areas. As a result, the niche storage market has benefited indirectly from supply constraints. Unlike the mainstream storage market, total downstream demand in the niche storage market remains relatively stable; however, during this rapid price escalation, demand has already been somewhat suppressed. Going forward, as capacity in the niche storage market gradually increases, prices are expected to decline significantly. As a fabless company, the company faces heightened risk of further tightening in wafer supply from its upstream manufacturing partners amid the current overall shortage in the niche storage market.
GigaDevice's stock price experienced a cumulative deviation of 73.42% in daily closing price increases over 10 consecutive trading days from June 15, 2026, to June 29, 2026, and a cumulative deviation of 125.60% in daily closing price increases over 30 consecutive trading days from May 18, 2026, to June 29, 2026.