GigaYi Innovation: In the future, along with a marginal increase in production capacity in the niche storage market, product prices will drop significantly

Comparing news, GigaYi Innovation issued a stock trading risk warning. The company's memory chip industry has shown significant cyclical fluctuation characteristics in history. Currently, product prices are at historically high levels, and the trend of continuing to rise sharply is unsustainable, and supply and demand in the industry will eventually be rebalanced.

In the future, with changes in multiple factors such as the macroeconomic environment, industry cycle, and market supply and demand relationships, prices of major products may drop by a considerable margin. At that time, product prices and gross margins of the company's storage business will all have a significant negative impact, leading to a decline in the company's overall profitability, and there is a risk that the company's operating performance will decline.

The storage products currently operated by the company are niche storage products, that is, the main downstream supply is in a broad and fragmented market other than mobile phones, PCs, and servers, such as consumer, industrial, Netcom, automotive, etc. The current rise in related product prices is mainly due to the significant increase in demand for AI in the mainstream storage market, causing major international storage companies to switch their business focus to related product fields. The niche storage market is mainly indirectly benefiting from tight supply. Unlike the mainstream storage market, the total downstream demand in the niche storage market is relatively stable. As industry prices rise rapidly, downstream demand has been suppressed to a certain extent. In the future, along with a marginal increase in production capacity in the niche storage market, prices will drop by a considerable margin. The company does not have a fab model. In the current context of overall supply shortages in the niche storage market, there is a risk that the supply of production capacity in upstream partner fabs will be further tight.

The cumulative daily closing price increase deviation value for 10 consecutive trading days from June 15, 2026 to June 29, 2026 reached 73.42%, and the cumulative daily closing price increase deviation value for 30 consecutive trading days from May 18, 2026 to June 29, 2026 reached 125.60%.