GigaDevice: Going forward, as marginal capacity increases in the niche storage market, product prices will see a significant decline.

Mars Finance News, on June 29, GigaDevice released an announcement regarding risk warnings for stock trading. The company’s storage-chip industry historically shows significant cyclical volatility. At present, product prices are at historical highs, and the trend of continuing to rise substantially is not sustainable. Ultimately, industry supply and demand will move toward rebalancing.

In the future, with changes in multiple factors including the macroeconomic environment, industry cycles, and market supply-demand dynamics, the prices of major products may experience a fairly large decline. At that time, the selling prices and gross margin for the company’s storage business will both be subject to significant negative impacts, thereby reducing the company’s overall profitability and creating a risk of declining operating performance.

The storage products the company currently operates are niche storage products, meaning that the main downstream customers are a broad and fragmented market beyond mobile phones, PCs, and servers, such as the consumer, industrial, networking, and automotive sectors. The current increase in the prices of related products is mainly driven by a significant rise in AI-related demand in the mainstream storage market, leading international storage giants to shift their operational focus to relevant product areas. Unlike the mainstream storage market, the total downstream demand in the niche storage market is relatively stable. During the industry’s rapid price upswing, downstream demand has already been suppressed to a certain degree. Going forward, as the niche storage market’s marginal production capacity increases, prices will see a fairly large drop.

The company operates on a fabless model. Against the backdrop of an overall supply shortage in the current niche storage market, there is a risk that the capacity supply from upstream partner foundries will become even tighter.

GigaDevice’s stock price has recorded a cumulative deviation of 73.42% in daily closing price increase over 10 consecutive trading days from June 15, 2026 to June 29, 2026, and a cumulative deviation of 125.60% over 30 consecutive trading days from May 18, 2026 to June 29, 2026.