Amidst the AI boom, the prosperity cycle for memory chips has officially commenced.

GigaDevice (03986.HK), an A-share listed company that debuted on the H-share market in 2026, has been met with fervent capital pursuit. As of March 19, 2026, the company’s shares closed at HK$433.80. Since its listing on January 13, the stock has achieved a cumulative increase of nearly 170%.

H-Shares Surge Nearly 170% in Two Months

NewTimeSpace has learned that GigaDevice has been highly sought after by investors since its H-share placement.

During the offering phase, GigaDevice’s Hong Kong public offering was oversubscribed by 542.22 times, while the international placement was oversubscribed by 18.52 times. Within the industry, the company's performance in both Hong Kong and international subscriptions was exceptionally prominent.

Furthermore, the company introduced 18 institutional cornerstone investors, including CPE, Yunfeng Capital, DAMSIMF, 3W Fund, and Green Better. They collectively subscribed for $300 million (approximately HK$2.332 billion), representing roughly 50.0% of the total offering.

On its listing debut on January 13, 2026, GigaDevice rose by nearly 40%. Subsequently, fueled by positive industry developments, the stock continued to gain momentum. By March 19, 2026, the company was quoted at HK$433.80, a cumulative increase of 167.78% from its offer price of HK$162.

On the day it entered the H-share market, the company's A-share price was RMB 263.5. Compared to the HK$162 offer price, the H-shares were issued at a discount of approximately 45.88%.

Since its Hong Kong listing through March 19, 2026, GigaDevice’s A-shares have seen a cumulative increase of 15.98%, significantly underperforming compared to its H-share performance.

Domestic Memory Chip Leader; 2025 Net Profit Grows Nearly 50%

Public data shows that GigaDevice, founded in 2005, is a diversified chip design company. It primarily provides customers with Flash (NOR Flash, SLC NAND Flash), niche DRAM, microcontrollers (MCU), analog chips, and sensor chips, along with complete systems and solutions including relevant algorithms and software. The company has achieved full-category coverage across consumer electronics, industrial applications, communications, and automotive electronics.

According to data from Frost & Sullivan, in terms of 2024 revenue, GigaDevice is a market leader in several fields and is the only integrated circuit design company ranked in the global top ten for NOR Flash, SLC NAND Flash, niche DRAM, and MCUs.

Specifically, it ranks 2nd globally and 1st in Mainland China for NOR Flash. For SLC NAND Flash, it ranks 6th globally and 1st in Mainland China. In niche DRAM, it ranks 7th globally and 2nd in Mainland China. For MCUs, it ranks 8th globally and 1st in Mainland China.

GigaDevice’s revenue is primarily derived from the sale of specialized memory chips (NOR Flash, SLC NAND Flash, niche DRAM, etc.), MCUs, analog chips, and sensor chips.

Shortly after its H-share listing, on January 23, 2026, GigaDevice released its 2025 earnings preview.

The announcement indicates that for 2025, GigaDevice expects operating revenue of approximately RMB 9.203 billion, a year-on-year increase of about 25%; net profit attributable to the parent company of RMB 1.61 billion, up about 46%; and non-GAAP net profit of RMB 1.423 billion, up about 38%. The primary driver is the steady upward cycle of the memory industry, where an optimized supply-demand structure has pushed both product price and volume higher.

NewTimeSpace has learned that in the third quarter, GigaDevice recorded operating revenue of RMB 2.681 billion (+31.4% YoY), net profit of RMB 508 million (+61.13% YoY), and non-GAAP net profit of RMB 498 million (+63.71% YoY).

GigaDevice’s performance has rebounded significantly since 2024, achieving high growth in both revenue and net profit in 2025, with growth accelerating further in the third and fourth quarters.

AI Triggers Memory Chip Cycle; H-Share P/E Reaches Nearly 210x 

The continuous rise in GigaDevice’s stock price is closely linked to its earnings growth and the spreading wave of price hikes across the semiconductor supply chain, which have become direct drivers for the sector and individual stocks.

NewTimeSpace understands that as a core component of the semiconductor industry, memory chips saw a wave of price increases in 2025. Unlike previous cycles driven by consumer electronics, the current memory cycle is uniquely driven by AI, forming a distinct "AI Memory Chip Cycle."

Data from Counterpoint Research shows that global DRAM and NAND flash prices surged significantly around the 2026 Lunar New Year, with multiple products rising by over 130% month-on-month. Supply shortages are not expected to be substantially resolved until at least the second half of 2027.

Currently, the explosive growth in AI-related demand is restructuring the demand landscape for memory chips. As large models iterate, demand for memory in AI servers and data centers has skyrocketed. HBM (High Bandwidth Memory), with its advantages in low power consumption and high bandwidth, has become a core requirement.

TrendForce predicts that HBM’s share of the global DRAM market will rise from 8% in 2023 to 34% in 2025. As international giants shift capacity toward high-end, high-profit products like DDR5 and HBM, the supply of standard DRAM and NAND has contracted, further driving up prices due to supply-demand mismatch.

Recently, Goldman Sachs released a research report on GigaDevice, significantly raising its 12-month target price from RMB 257 to RMB 348. This rating and target price adjustment are primarily based on strong expectations that GigaDevice’s specialty DRAM business will benefit from rising prices and product structure upgrades. They are also optimistic about the continued growth of its NOR Flash and NAND Flash businesses, as well as long-term opportunities for customized DRAM in scenarios like Edge AI.

Goldman Sachs believes that against the background of a tight supply-demand balance in the memory industry driven by high demand for AI servers, GigaDevice is a core beneficiary in the memory sector due to its product iterations, capacity layout, and strategic positioning.

Notably, GigaDevice’s current round of performance and stock price growth is largely tied to the memory chip price hike cycle. While issuing an "Overweight" rating, BOC International also warned of risks regarding memory chip price fluctuations and inventory impairment. If the cycle peaks and retreats, the company’s performance could face downward pressure.

From a valuation perspective, based on 2025 results, the company’s price-to-earnings ratio is at a high level. As of the close on March 19, 2026, GigaDevice’s A-share P/E (TTM) was 157.29x, while its H-share P/E (TTM) reached 209.12x—significantly higher than the A-shares—indicating potential pressure for a valuation correction.

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