On July 2, GigaDevice (03986.HK) fell 10.35% in regular trading, trading at HKD 1,061.0 per share, with turnover of HKD 466 million. The sharp decline comes amid a broad semiconductor sector selloff triggered by dual headwinds.

On the news front, reports emerged that Meta is developing plans to launch a cloud infrastructure business selling AI compute and model access to external clients. The market interpreted this as a signal that big tech AI infrastructure capital expenditure may be peaking, raising concerns that high-performance storage and compute chips currently facing supply bottlenecks could soon face oversupply. Simultaneously, GigaDevice recently issued a risk warning stating that its trailing P/E ratio of 200.17x significantly exceeds the industry average of 128.83x, that storage chip prices are at unsustainable historical highs, and that as mainstream storage manufacturers re-enter the niche storage market, product prices face substantial downward correction risk.

Within the Semiconductors sector, SMIC fell 8.95%, Hua Hong Grace fell 11.62%, Iluvatar CoreX fell 14.66%, Montage Tech fell 6.97%, and Biren Tech fell 11.76%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)