After nearly tripling in six months, the leading storage chip company with a market value of 589.5 billion issues a late-night warning of a "rapid decline."

```

After setting a historic record for trading volume and a stunning nearly 300% increase this year, storage chip giant GigaDevice, with a market cap of 589.5 billion yuan, issued a late-night, proactive “cooling” statement, reflecting dual concerns over high-level storage cycle speculation and overheated capital.

On the evening of Monday, June 29, GigaDevice released a stock trading risk warning announcement, clearly stating that the sharp rise in prices in its niche storage market is unsustainable. The announcement bluntly said current high prices are suppressing downstream demand, and as marginal capacity increases, product prices will face a considerable decline.

This warning comes just as the company’s stock price reaches an emotional boiling point. That day, GigaDevice's trading volume hit 43.15 billion yuan, topping the A-share market and, for the first time, was included as a major holding in the world’s hottest memory ETF. With passive capital acceleration and industry capital signaling a cyclical top, market competition is becoming increasingly intense.

For investors, this is not only a routine compliance disclosure, but also a fundamental logic “correction” signal for the extreme sentiment premium in the current semiconductor sector. Short-term trading risks can no longer be ignored.

Niche storage supply-demand reversal, high-cycle warning sounded

GigaDevice's announcement detailed the structural contradictions currently present in the storage market. The company pointed out that the storage chip industry is characterized by significant cyclical fluctuations, and product prices are now at historic highs. Supply and demand will eventually rebalance. Unlike the mainstream storage market, driven strongly by AI demand, GigaDevice’s niche storage products are mainly used in consumer, industrial, networking, automotive, and other diversified fields, with relatively stable downstream demand volumes.

The current rise in niche storage prices is mainly due to international giants shifting capacity focus to AI-related mainstream storage, indirectly benefiting the niche market by tightening supply. However, as prices rise rapidly, downstream demand is being substantially suppressed. The company explicitly warns that as capacity for niche storage increases at the margin, prices will substantially fall. In addition, as a fabless company, under broad supply shortage, it also faces intensified supply chain risk from wafer foundry partners upstream becoming even more strained.

Global passive capital enters, ETF major holdings amplify volatility

While fundamental concerns emerge, capital fervor continues to push up the stock price. On June 27, the rare pure-storage actively managed ETF in the US market—Roundhill Memory ETF (DRAM)—published its latest holdings, adding GigaDevice for the first time, with a weighting of 2.91%, ranking as the eighth largest holding. This marks the first inclusion of an A-share storage target since the ETF’s launch in April and is the only A-share storage chip company in its portfolio, signifying substantial global passive capital recognition for China’s storage industry chain.

Domestic public funds are also highly concentrated. Wind data shows GigaDevice is the largest weighted stock in the CSI Semiconductor Chip Index, accounting for over 10%; the four ETFs linked to this index have a total scale of 47.191 billion yuan. Meanwhile, it is the second largest weighted stock in the China Securities Chip Industry Index, weighting over 8%, with related ETF scale close to 10 billion yuan. Extremely high index weights mean that if sector sentiment wanes or ETFs face net redemption, the mechanical portfolio adjustment by passive capital will significantly magnify individual stock downside volatility.

Sentiment premium urgently needs digestion, short-term trading risks highlighted

From the trading data, GigaDevice’s short-term surge is far outside normal valuation range. On June 29, its A shares rose 9.09%, nearly hitting the limit-up, closing at 840 yuan, with cumulative annual gain of 292.64%; its Hong Kong shares were even more aggressive, with a year-to-date increase of 667.50%. Recent trading volume has stayed above 37 billion yuan for consecutive days, with the single-day 43.15 billion yuan marking a record high since listing, ranking first among A shares.

With industry supply-demand expectations reversing and short-term capital extremely crowded, the semiconductor sector as a whole faces severe valuation digestion pressure. The late-night warning from industry capital is essentially a rational cooling of overheated trading sentiment. Investors should closely monitor subsequent institutional capital portfolio adjustments and actual niche storage price trends, beware of rapid pullbacks from fading short-term sentiment premiums, and return to rational investment logic.

Risk Warning and DisclaimerThe market involves risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the special investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Invest at your own risk. ```