--- title: "HSBC Research Initiates GIGADEVICE at Buy with HKD936.03 TP, Bullish on Specialty Memory Upcycle" type: "News" locale: "en" url: "https://longbridge.com/en/news/293874054.md" description: "HSBC initiated coverage on GIGADEVICEwith a Buy rating and HKD936.03 target price, citing benefits from the specialty memory upcycle. The broker raised A-share TP to RMB698.9 and significantly increased net profit forecasts for 2026-2028 by over 130%. HSBC highlighted structural supply gaps in NOR Flash, SLC NAND, and DRAM, viewing short-term market corrections as priced-in risks." datetime: "2026-07-27T03:14:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293874054.md) - [en](https://longbridge.com/en/news/293874054.md) - [zh-HK](https://longbridge.com/zh-HK/news/293874054.md) generator: "portal-rs" --- # HSBC Research Initiates GIGADEVICE at Buy with HKD936.03 TP, Bullish on Specialty Memory Upcycle HSBC Global Investment Research issued a report initiating coverage on GIGADEVICE (03986.HK) -26.000 (-4.577%) Short selling $97.43M; Ratio 3.799% H shares with a Buy rating and a TP of HKD936.03. HSBC Global Investment Research also raised the A-share TP for GIGADEVICE (603986.CH) to RMB698.9 from RMB441.2, while maintaining a Buy rating. The broker said GIGADEVICE is a key beneficiary of the memory upcycle, supported by its high-density product capabilities and stable foundry partner relationships. The report believed the specialty memory pricing cycle still has room to run. In NOR Flash, rising firmware requirements are driving demand toward high-density products, while GIGADEVICE offers broad product coverage and more flexible production capacity. In SLC NAND, the exit of leading suppliers has created a structural supply gap. For specialty DRAM, major suppliers are shifting capacity toward HBM and DDR5, and supply tightness is expected to persist through 2027. HSBC Global Investment Research significantly raised its earnings forecasts for GIGADEVICE, increasing its net profit forecasts for 2026 to 2028 by 169%, 147% and 134%, respectively, to RMB15.638 billion, RMB17.579 billion and RMB18.468 billion. The report said the listing of CXMT is more positive for the H-share investment narrative, as GIGADEVICE remains one of the few liquid stocks allowing offshore investors to participate in China's memory cycle. Its strategic value lies more in commercial relationships than equity investment. Capacity expansion and technology upgrades at CXMT are expected to help GIGADEVICE accelerate the advancement of DDR4 and LPDDR4. Potential catalysts include further increases in memory prices, strong 3Q26 results and rising orders in high-value segments. The broker noted that GIGADEVICE H shares have corrected about 35% over the past month, compared with a 4% decline in the CSI 300 Index and a 5% rise in the HSI over the same period. This reflects market concerns over memory capacity expansion and the sustainability of AI capital expenditure, profit-taking, the expiry of lock-up periods for H-share cornerstone investors, and 2Q26 recurring earnings falling short of some optimistic forecasts. The broker believes short-term risks have already been priced in.(ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-24 16:25.) ### Related Stocks - [03986.HK](https://longbridge.com/en/quote/03986.HK.md) - [603986.CN](https://longbridge.com/en/quote/603986.CN.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [00HSI.HK](https://longbridge.com/en/quote/00HSI.HK.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) ## Related News & Research - [GIGADEVICE Forecasts Tight DRAM Supply Situation to See No Noticeable Relief Next Yr](https://longbridge.com/en/news/297725585.md) - [GigaDevice files HKEX next-day disclosure return reporting share repurchase for cancellation](https://longbridge.com/en/news/298020737.md) - [GigaDevice files HKEX next-day return disclosing share buyback for cancellation](https://longbridge.com/en/news/297895126.md) - [GigaDevice partners with Rutronik to expand distribution across EMEA, Southeast Asia](https://longbridge.com/en/news/297477451.md) - [GigaDevice files HKEX next-day disclosure return, lifts share capital by 2,226,393 shares](https://longbridge.com/en/news/297030906.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**