Key Takeaways:
- GigaDevice expects 1H26 net profit of RMB 6.9 billion, up 1,099% year-on-year
- Revenue rose 177% to approximately RMB 11.5 billion in the first half
- Tight memory chip supply drove both volume and pricing gains across product lines
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GigaDevice profit surges 11x as memory chip tight supply drives growth
GigaDevice Semiconductor Inc. (03986.HK) expects first-half 2026 net profit of approximately RMB 6.9 billion ($948 million), a 10.99-fold surge from a year earlier, as tight memory chip supply boosted both volumes and prices.
"The memory chip industry experienced tight supply, and the group's memory chip products achieved both volume and price growth, resulting in an improvement in the profitability of its memory business," the company said in a filing to the Hong Kong stock exchange after the market close on July 9.
Revenue climbed 177% to about RMB 11.5 billion in the six months ended June 30. Net profit after deducting non-recurring items rose 7.91-fold to RMB 4.85 billion. Second-quarter net profit reached an estimated RMB 5.44 billion, up about 272% from the first quarter's RMB 1.46 billion, according to calculations based on the company's guidance.
The Beijing-based memory chip maker benefited from demand across industrial, consumer electronics and automotive sectors, which drove solid growth in microcontroller unit shipments. The company also recorded higher fair value gains on its securities investment portfolio during the period.
GigaDevice shares opened 5.26% higher on July 10 following the profit alert. The stock has gained more than 60% year-to-date, tracking a broader rally in Chinese semiconductor stocks driven by AI-related demand and domestic substitution trends.
The results underscore the cyclical recovery in the memory chip market after a prolonged downturn in 2023 and 2024. Rival chipmakers including Yangtze Memory Technologies and CXMT have also reported improving utilization rates as demand from data centers and AI applications absorbs industry capacity.
The guidance raise signals management expects the memory upcycle to continue. Investors will watch the company's interim report for segment-level margin details and any capacity expansion plans.
This article is for informational purposes only and does not constitute investment advice.
[1] GIGADEVICE Opens 5%+ Higher, Expects 11x YoY Surge in 1H26 Profit[2] Net profit surges up to 10.99-fold year-over-year! Leading $460 billion memory chip company releases interim earnings forecast | Post-market Announcement Roundup - 富途牛牛[3] GigaDevice First-Half Net Profit Soars 1,100% as Tight Memory Chip Supply Fuels Earnings Surge - finance.biggo.com