The stock of Gigadevice (HKEX: 03986) is rising strongly against the broader market trend, gaining over 7%. As of writing, the share price is up 7.41% to HK$79.0, with a trading turnover of HK$982 million.

Industry Data Points to Robust Growth

According to recent industry statistics, the global NAND market soared to a record $46.0 billion in the first quarter of 2026, driven by artificial intelligence (AI) demand. This represents a 90% increase from the fourth quarter of 2025 and a remarkable 246% surge compared to the first quarter of the previous year, even surpassing the total market value for the entire year of 2023. This momentum mirrors the earlier trend of significant price increases in the DRAM sector. The deployment of AI infrastructure and the transition towards "Agentic AI" remain the core growth engines for the NAND market.

Analyst Commentary on Supply and Pricing

Analysts have noted that in the first quarter of 2026, SLC NAND faced a significant shortage, with product prices rising sharply and revenue showing strong sequential growth. This situation is partly due to major overseas manufacturers accelerating their exit from the 2D NAND market. From an industry perspective, many larger-capacity system solutions are shifting towards 2D NAND, leading to robust demand growth. The supply gap for 2D NAND is very large, and the imbalance between supply and demand is intensifying. In the medium to long term, supply is expected to remain very tight, suggesting that prices may continue on an upward trajectory.

Company's Strategic Positioning

From the company's strategic standpoint, leveraging years of technology and product development, it has established a comprehensive product portfolio. This includes both serial and parallel interface categories, with capacities covering the range from 1Gb to 8Gb, enabling rapid breakthroughs in the niche memory market.