Gigadevice (603986.SS): Specialty DRAM product mix upgrade; Accelerated SLC NAND ramp up with shipment growth; Buy

We remain positive on the company's growing revenue contribution from Specialty DRAM and SLC NAND businesses with the accelerated ramp up and favorable pricing. Looking into 3Q, we expect to see continued QoQ growth of Specialty DRAM pricing, albeit with a gradual moderation in the growth rate, and continuous wafer shipment ramp up of SLC NAND. We expect GM to slightly improve in 3Q26E vs. 1Q26/2Q26 on product mix upgrade and pricing increase. With rising AI demand with growing requirement on high-end products, we expect the company to benefit from the tight supply and diversification into new applications. Maintain Buy. The company's NAND revenues rose in 1H26 versus 2025, supported by both shipment growth and ASP increase;