Hong Kong AI Concept Stock Daily: GIGADEVICE Leads with a 9.91% Gain as SK Hynix Posts a More Than Sixfold Rise in Third-Quarter Operating Profit - 20261028

I. Market Overview

On October 28, 2026, the three major Hong Kong indices opened higher, dipped in early trade before rebounding, then pared gains in the afternoon to close higher. The Hang Seng Index closed at 23,094.83, up 0.23%; the Hang Seng TECH Index closed at 3,853.72, up 1.40%; and the Hang Seng China Enterprises Index closed at 7,791.63, up 0.32%. Full-day turnover on the Hang Seng Index reached HKD 181.4 billion, slightly above HKD 178.3 billion a day earlier. Seventeen of the 20 AI concept stocks closed higher, with all AI chip and autonomous driving names advancing and most LLM names up.

In the LLM space, MINIMAX-W (00100.HK) rose 4.65%, Z.AI (02513.HK) rose 3.81%, BIDU-W (09888.HK) rose 2.52%, BABA-W (09988.HK) rose 1.96% and TENCENT (00700.HK) rose 0.62%, while KUAISHOU-W (01024.HK) fell 0.44% and MEITUAN-W (03690.HK) fell 0.90%, the weakest performer in the pool.

In the AI Chips space, all six names advanced: GIGADEVICE (03986.HK) rose 9.91%, MONTAGETECH (06809.HK) rose 9.20%, HUA HONG GRACE (01347.HK) rose 8.44%, BIRENTECH (06082.HK) rose 6.61%, SMIC (00981.HK) rose 5.43% and ILUVATAR COREX (09903.HK) rose 3.08%.

In the Autonomous Driving space, all five names advanced: WERIDE-W (00800.HK) rose 9.27%, BLACK SESAME (02533.HK) rose 5.20%, ROBOSENSE (02498.HK) rose 3.99%, HORIZONROBOT-W (09660.HK) rose 3.74% and PONY-W (02026.HK) rose 2.10%.

In the Embodied AI space, UBTECH ROBOTICS (09880.HK) rose 9.16%, while XIAOMI-W (01810.HK) slipped 0.16%, the second-weakest performer in the pool.

II. Market Performance of Representative AI Stocks

Data Source: HKEX. For reference only, not investment advice. Data as of market close on October 28, 2026.

III. AI Industry & Corporate Developments

1. SK Hynix Third-Quarter Operating Profit Rises More Than Sixfold as the Company Sees Memory Shortages Lasting to 2030

On October 28, SK Hynix reported fiscal 2026 third-quarter revenue of KRW 104.62 trillion, the first single quarter above KRW 100 trillion and up 328% year on year, with operating profit of KRW 83.33 trillion, up 631%, both quarterly records. The company said growth in AI memory demand lifted prices for its main products, with HBM4, server DDR5 and enterprise SSDs driving results, and that shortages in the memory market are expected to persist until 2030 given the difficulty of advanced processes and the time needed to build new facilities. It has signed long-term agreements with 14 core customers covering more than 50% of capacity for 2027 and 2028, and announced a shareholder return programme of about KRW 100 trillion.

2. TSMC and OSAT Vendors Weigh a New Round of Price Increases, with CoWoS Quotes Seen Rising 10% to 20%

According to TrendForce citing media reports, surging AI demand and broad capacity tightness across the semiconductor supply chain have prompted foundries and outsourced assembly and test vendors including TSMC to prepare a new round of price increases, with CoWoS advanced packaging quotes set to rise 10% to 20%; the technology is widely used in high-end AI processors. Longer AI chip testing cycles are adding further pressure on packaging capacity, and equipment lead times have extended from three to six months to six to eight months. Offshore, the Philadelphia Semiconductor Index rose 3.6% and the Nasdaq gained 1.18% overnight, while South Korea's benchmark index rose as much as 6% intraday on the day.

3. GIGADEVICE Has Repurchased 3.0086 Million Shares, All of Which Will Be Cancelled

On October 27, GIGADEVICE (03986.HK) disclosed progress on its buyback, having repurchased 3.0086 million A-shares through centralised bidding, equal to 0.43% of total share capital, at a maximum price of RMB 411.95 and a minimum of RMB 271.43, for a total consideration of RMB 1.115 billion; the repurchased shares will all be cancelled. The company's shareholders approved the buyback on August 20, covering RMB 1 billion to RMB 2 billion of its own and self-raised funds at a ceiling of RMB 750 per share.

4. Mutual Fund Third-Quarter Reports Complete, with Semiconductors and AI Computing Still the Core Holdings

The third-quarter 2026 reports of Chinese mutual funds were completed on the evening of October 27. Aggregate holdings show AI computing and semiconductors remaining the core positions, with Zhongji Innolight and Eoptolink holding the top two places for a second period, memory leader ChangXin Memory Technologies rising to fourth and WuXi AppTec and WUS Printed Circuit entering the top ten. By structure, some managers trimmed AI hardware and new energy names that had rallied strongly, rotating towards cheaper valuations or industry inflection points; storage chips, optical fibre and upstream PCB materials in the price increase chain saw reductions, while overseas-linked optical components and PCB segments continued to attract inflows.

5. Copper Clad Laminate and Electronic Cloth Price Increases Continue as KB Laminates Raises Prices Repeatedly This Year

On October 28, third-quarter results across the PCB supply chain were broadly strong, with price increases passing up the materials chain. Since the start of 2026, copper clad laminate leader KB Laminates has issued repeated price increase notices, completing at least five rounds between March and June, lifting the tax-inclusive price of FR-4 laminates from about RMB 150 per sheet to RMB 240, with a single-round increase of 15% in mid-June. Upstream 7628 electronic glass cloth has also completed five rounds of increases this year, with average prices rising to RMB 7.4 per metre, about 100% above the low of the third quarter of 2025. The Taiwan Printed Circuit Association said tightness has spread from high-end materials such as Low CTE cloth and Low Dk2 to copper clad laminates, high-layer PCBs and ABF substrates, with some mid and low-end materials also seeing longer lead times or higher prices.

IV. Profiles of Representative AI Concept Stocks