Since late July, the graphics card market in Shenzhen's Huaqiangbei has witnessed a dramatic surge, with prices skyrocketing by 30% in less than a week, giving rise to the phenomenon of 'daily price fluctuations.' Driven by the soaring demand for AI computing power, memory manufacturers have redirected their production capacity towards High Bandwidth Memory (HBM), resulting in a constrained supply of memory for consumer-grade graphics cards. Consequently, graphics card manufacturers have suspended shipments, fueling the price hike. Colorful, the dominant player in mainland China's graphics card market, is well-positioned to seize the majority of business opportunities. Meanwhile, Chaintech, a Taiwanese listed company in which Colorful has invested, could emerge as a hidden champion in this scenario.
