Gigadevice (03986) saw its shares climb 7.82% during the morning session, currently trading at HK$416.40 with a turnover of HK$506 million.

On February 20, SK Hynix stated in a conference call that it cannot meet all customer demand. Driven by strong demand from AI clients and limited supply growth, memory prices are expected to continue rising this year. Inventory levels for DRAM and NAND are down to approximately four weeks, and this level is projected to decline further throughout the year. The company is currently negotiating long-term, multi-year contracts with major customers. SK Hynix also mentioned that its HBM production for 2026 is already fully sold out, with production plans allocated to meet customer demand. The current tight supply-demand situation for conventional DRAM could lead to more favorable terms for its HBM (High Bandwidth Memory) business in 2027.

Huajin Securities previously noted that as the memory cycle steadily improves, and considering the company's ongoing advancements in memory chip process technology and product iterations, its NOR Flash business is expected to maintain a leading position. With major DRAM manufacturers shifting capacity, Gigadevice could replicate its NOR Flash development path, and its customized DRAM offerings are poised to unlock new growth opportunities. Coupled with the expansion of its MCU portfolio and the development of its sensor and analog businesses, the company's performance is anticipated to see sustained growth against the backdrop of increasing adoption of intelligence in consumer electronics, automotive electronics, and industrial applications.