Shares of GIGADEVICE (03986) climbed more than 5% on Thursday, with the stock trading 5.05% higher at HK$494.8 at the time of writing, on turnover of HK$1.416 billion.

The rally follows the company's disclosure in its investor relations activity record that DRAM product prices have risen for several consecutive quarters. As of the end of the second quarter, niche DRAM prices remained on an upward trajectory, with expectations that the trend will continue in the second half of the year, albeit shifting to a more moderate pace of increases.

Looking ahead to 2027, incremental capacity release in the DRAM industry is expected to be relatively limited, meaning the supply tightness will not ease significantly. The industry's cyclical upturn is anticipated to be prolonged, with product prices likely to hover at elevated levels with high volatility.

The company's interim results released earlier showed revenue of RMB 11.566 billion for the first half, up 178.67% year-on-year, while net profit attributable to shareholders surged 1,091.5% to RMB 6.857 billion. In the second quarter alone, net profit reached RMB 5.396 billion, representing a 269% quarter-on-quarter increase.

Analysts at Zhongtai Securities noted that in the current major memory cycle, price increases for niche DRAM, SLC NAND, and NOR Flash have continued to exceed expectations. The company's memory chip revenue grew 245% year-on-year in the first half, with niche DRAM and SLC NAND achieving rapid growth, positioning the company to continue benefiting substantially from this trend.