GigaDevice to ride memory boom as AI demand fuels earnings surge

Chinese chipmaker GigaDevice Semiconductor Inc. (SHA: 603986) is emerging as a strong player in the domestic semiconductor industry, capitalizing on the global memory supercycle. The company’s shares have soared especially after its trading debut in Hong Kong in January, for its secondary listing as appetite for memory chipmakers swells amid the AI-driven tech rally.

Visible Alpha consensus points to strong growth expectations for the memory player. Revenue from GigaDevice’s memory business, which accounts for more than 80% of group sales, is expected to climb 147% year-on-year to CNY16.2 billion in 2026. The strongest gains are projected in DRAM, where revenue is forecast to rise 345% to CNY8.3 billion, reflecting increasing demand for higher-performance memory (HBM) used in AI servers, data centers, and advanced computing applications.

The company’s established NOR flash franchise is also expected to benefit from improving pricing and volumes, with revenue projected to increase 61% to CNY7.3 billion. NAND flash revenue is forecast to jump 357% to CNY2.2 billion. Together, these trends are expected to lift memory-segment gross profit by 253% to approximately CNY10 billion.

Growth is not confined to memory. Revenue from GigaDevice’s microcontroller and technical services operations is expected to post double-digit gains, supported by recovering industrial and automotive demand. The Silead business, however, is forecast to decline 4%, extending weakness seen over the past year.

Overall, analysts expect the strength of the memory division to more than offset softer areas of the portfolio, driving total company revenue up 117% to CNY20 billion in 2026.

 This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.