GigaDevice: With the niche storage market’s capacity marginally increasing further, product prices will see a fairly significant decline.

BlockBeats news, June 29, GigaDevice issued a stock trading risk warning announcement, the company's storage chip industry has historically exhibited significant cyclical fluctuation characteristics. Currently, product prices are at historical highs, and the trend of continuous sharp increases is unsustainable. Industry supply and demand will eventually move toward rebalancing.

In the future, with changes in multiple factors such as the macroeconomic environment, industry cycles, and market supply and demand dynamics, the prices of main products may experience a considerable decline, which will have a significant negative impact on the company's storage business product selling prices and gross margins, thereby reducing the company's overall profitability, posing a risk of decline in the company's operating performance.

The storage products currently operated by the company belong to niche storage products, meaning they are primarily supplied to a broad and fragmented downstream market excluding mobile phones, PCs, and servers, such as consumer, industrial, networking, automotive, and other fields. The current price increase of related products is mainly driven by the significant rise in AI demand in the mainstream storage market, prompting major international storage manufacturers to shift their operational focus to related product areas. The niche storage market mainly benefits indirectly from supply tightness. Unlike the mainstream storage market, the total downstream demand in the niche storage market is relatively stable. During the rapid price increase phase, downstream demand has already been suppressed to some extent. As niche storage market capacity marginally increases, prices will experience a considerable decline. The company operates in a fabless model, and under the current shortage of overall supply in the niche storage market, there is a risk of further tightening in the capacity supply from upstream partner foundries.

From June 15, 2026 to June 29, 2026, the cumulative deviation of GigaDevice's stock closing price increase over 10 consecutive trading days reached 73.42%. From May 18, 2026 to June 29, 2026, the cumulative deviation of its closing price increase over 30 consecutive trading days reached 125.60%.