--- title: "GigaDevice, which global capital had \"invited to the table,\" was almost \"kicked out\" by ChangXin Memory Technologies." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43177055.md" description: "Lead: In the latest holdings of the globally popular storage ETF, Roundhill Memory ETF, $CXMT(688825.SH) ranks eighth, while GigaDevice falls to tenth. On August 3, $GIGADEVICE(03986.HK) experienced a day full of reversal implications. Just over a month ago, it had just become the "representative" for global capital betting on China's storage industry. However, the market's answer is now completely different. On that day, the storage chip sector weakened collectively, with GigaDevice hitting the daily limit down during trading. Meanwhile..." datetime: "2026-08-04T09:11:13.000Z" locales: - [en](https://longbridge.com/en/topics/43177055.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43177055.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43177055.md) author: "[阿尔法工场](https://longbridge.com/en/profiles/5044766.md)" generator: "portal-rs" --- # GigaDevice, which global capital had "invited to the table," was almost "kicked out" by ChangXin Memory Technologies. Introduction: In the latest holdings of the globally popular Exchange Traded Fund — Roundhill Memory ETF, $CXMT(688825.SH) has risen to eighth place, while GigaDevice fell to tenth. On August 3, $GIGADEVICE(03986.HK) experienced a day full of reversal implications. Just over a month ago, it had just become the "representative" for global capital betting on China's storage industry. But now, the answer given by the market is completely different. That day, the storage chip sector weakened collectively, and GigaDevice hit the daily limit down during trading. At the same time, the globally popular storage ETF — Roundhill Memory ETF — completed its quarterly rebalancing. GigaDevice's holding weight decreased from 2.91% to 1.51%, dropping from the eighth largest heavy-weight stock to tenth. Meanwhile, another Chinese storage company, CXMT, entered the ETF with a new weight of 2.52%, ranking eighth. One was downweighted, one was newly included; the ranking in the capital market is changing. Over a month ago, GigaDevice was still the symbol of "China's storage rise". Now, it has become a sample for the market to re-examine the storage cycle, industrial competition, and corporate valuation. What exactly happened in between? **01 The Iron Law of Cyclical Stocks** Time goes back to over a month ago. At the end of June, the world's hottest storage-themed ETF — Roundhill Memory ETF — completed its quarterly rebalancing. GigaDevice was included in the investment portfolio for the first time, ranking as the eighth largest heavy-weight stock with a 2.91% weight. This was the first time since the ETF launched in April that a mainland Chinese A-share company was invited to the global storage industry table. Previously, this list was monopolized by overseas giants: Samsung, Micron, SK Hynix, Kioxia, Western Digital, Seagate... The appearance of GigaDevice meant that Chinese storage enterprises entered the valuation system of global mainstream capital for the first time. The market began to retell the story of GigaDevice: domestic substitution, AI storage cycle, and the breakthrough of China's semiconductors. At that moment, GigaDevice stood at the center of the wind tunnel. But the cruelty of the capital market lies in this: when everyone starts believing a story, risks often begin to accumulate. Entering July, GigaDevice's stock price fell from a high of 846.66 yuan to a low of 337.1 yuan. In just one month, the maximum decline exceeded 60%. For a semiconductor enterprise, such an adjustment is not unusual. Because during the same period, what it delivered was not a poor earnings report. On July 10, GigaDevice released its performance forecast for the first half of 2026: expected revenue of approximately 11.5 billion yuan, a year-on-year increase of 177%; net profit attributable to shareholders of approximately 6.9 billion yuan, a year-on-year increase of 1099%; and non-GAAP net profit of approximately 4.85 billion yuan, a year-on-year increase of 791%. This is the highest level of revenue and profit for the company since its listing. But the stock market chose to vote with its feet. Because what the capital market trades is never the past, but the future. When niche DRAM prices have risen continuously for several quarters, NOR Flash has seen moderate upward trends, and SLC NAND is at historical highs, the market does not fail to see good performance; rather, it worries that "it has peaked". Storage chips are one of the most cyclical tracks in the A-share market, where the market is accustomed to pricing six months to a year in advance. GigaDevice itself admitted in research meetings that the single-bit price of DRAM products is already at a relatively high level, and will subsequently turn to moderate upward growth. The investment logic of cyclical stocks has never been "how much is earned now", but "can more be earned in the future?". When those who understand the situation best in the industry chain start signaling "moderate upward growth", the first reaction of capital is often to jump ship early. **02 From "Cyclical Stock" to "Growth Stock"** If cyclical concerns were only the first layer of pressure, then the reduction operation by actual controller Zhu Yiming further amplified the reversal of market sentiment. On the evening of July 29, GigaDevice densely disclosed five announcements. The timeline is intriguing: Between May 6 and June 12 this year, Zhu Yiming had already completed a reduction and cashed out 4.4 billion yuan; and right after the stock price halved in July, he announced plans to increase holdings by no less than 1 billion yuan, while proposing that the company repurchase shares worth 1 to 2 billion yuan, and promised not to reduce holdings in the next 12 months. Cashing out at high levels and supporting the market at low levels, separated by only two months, the speed of rhythm switching inevitably drew attention from the market. Major shareholder reductions are legal rights, and realizing gains at high levels is also human nature. But the problem is that Zhu Yiming is not only the founder and chairman of GigaDevice, but also concurrently serves as the chairman of ChangXin Memory Technologies (CXMT). His judgment of the industry's warmth and coldness is more sensitive than any external investor. His dense reduction in May and June would naturally be interpreted by the market as "industrial capital retreating at peak prosperity". Subsequently announcing an increase of 1 billion would only make the market feel it is a "posture under pressure" rather than "genuine optimism". After a set of "combo punches" were thrown, the stock price briefly stopped falling and stabilized, but the effect of supporting the market vanished instantly. On August 3, just as the positive news bullets were fired, they were swallowed by pessimistic sentiment. However, if one only looks at the stock price and reductions, one might underestimate the intrinsic value of GigaDevice itself. This company is undergoing a business structure upgrade, transitioning from a single entry point dependent on NOR Flash in the past to a multi-product platform-type semiconductor company. Look at a few sets of hard power data: NOR Flash ranks second globally with a market share of 20.4%, ranking first in mainland China by a wide margin, with cumulative automotive-grade shipments exceeding 300 million units; Niche DRAM is bound with CXMT, locking in 5.7 billion yuan of production capacity. As overseas giants shift resources to HBM and server large-capacity DRAM, the supply gap in the niche market continues to expand; SLC NAND benefits from capacity adjustments by overseas manufacturers, with the prosperity cycle expected to continue until 2027; MCU is the domestic leader in 32-bit general-purpose microcontrollers, currently being mass-imported into automakers such as BYD and Nio. From a business structure perspective, GigaDevice's basic factors are not bad. But what the market is currently trading is not "how much is this company worth", but "where the storage cycle has reached". Company management stated in institutional research on July 31: "We thank the boost from the cycle and are fortunate to witness the storage industry shifting from being dominated by traditional consumer electronics inventory cycles to a long prosperity cycle driven by AI." The subtext of this sentence is: GigaDevice is switching from a "cyclical stock" to a "growth stock". But does the market believe it now? **03 Epilogue** The story of GigaDevice is actually a microcosm of a classic sample in China's semiconductor industry. It possesses the world's second-largest NOR Flash business, the domestic number one MCU, deeply binds with CXMT to layout niche DRAM, and simultaneously enjoys the growth in storage demand brought by the AI era. But when the expectations for the storage cycle peak, industrial capital reduces holdings at high levels, and funds concentrate on selling off, even the best fundamentals cannot withstand the concentrated release of the short-term market. From entering the global storage ETF at the end of June, to the stock price halving in July, to the weight cut in August — what GigaDevice has experienced is not just a stock price fluctuation; it is more like a vote on the "future of Chinese storage". The question the market ultimately needs to answer is: Is the super cycle of storage in the AI era a new industrial revolution, or just another cycle of prosperity? The answer lies not in performance, but in faith. And faith, precisely, is the most expensive thing in the capital market. ### Related Stocks - [688825.CN](https://longbridge.com/en/quote/688825.CN.md) - [03986.HK](https://longbridge.com/en/quote/03986.HK.md) - [603986.CN](https://longbridge.com/en/quote/603986.CN.md) - [DRAM.US](https://longbridge.com/en/quote/DRAM.US.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**