GigaDevice Innovation (3986.HK) tumbled 10% during regular trading to HK$1,081. The semiconductor sector faced broad pressure as investors worry about peak capital spending by major tech firms on AI infrastructure, potentially leading to future oversupply in high-performance storage and computing chips. GigaDevice previously warned that pricing risks may arise as mainstream memory manufacturers re-enter niche storage markets. Morgan Stanley noted the warning reflects potential industry headwinds over the coming years, though tight supply-demand conditions persist for now.
