Shannon Semiconductor Technology Co., Ltd. Surges Amid Storage‑Chip Price Upsurge
Shannon Semiconductor Technology Co., Ltd. (SZ:300475) experienced a dramatic rally in late October 2025, driven by a sector‑wide surge in storage‑chip pricing and heightened demand from artificial‑intelligence (AI) applications. The company’s shares climbed 20 % on 24 October, reaching a 20‑centimeter (20 CM) limit‑up, and continued to rise on 25 October when the stock surged an additional 220 %, pushing the market value close to CNY 60 billion.
Key Drivers of the Rally
| Driver | Impact on Shannon Semiconductor |
|---|---|
| Global storage‑chip price increase | Major suppliers such as Samsung and SK Hynix announced 10–30 % hikes in DRAM and NAND flash prices to meet AI‑driven demand. The price lift has lifted the entire storage‑chip segment, benefitting all constituents, including Shannon. |
| AI server growth | The expansion of AI server deployments has amplified the need for high‑density memory. Analysts note that AI workloads drive the need for faster, larger memory modules, directly supporting companies that design and supply such components. |
| Capital inflows | Shannon’s shares were among the top performers in the A‑share market on 25 October. According to a report from East Money, the company was the largest net buyer on the day, with a net purchase of CNY 6.35 billion. The inflow coincided with a broader trend of institutional and retail capital flowing into the semiconductor and AI supply‑chain sectors. |
| Early‑stage investment gains | A separate report from Xueqiu highlighted that early‑stage investor “Key Stone Capital” had invested approximately CNY 1.1 billion in Shannon in 2019. With the recent price surge, the investor’s unrealised profit approached CNY 13.2 billion, underscoring the firm’s attractiveness to long‑term holders. |
Market Context
Shannon Semiconductor operates in the industrial machinery sector on the Shenzhen Stock Exchange, with a market capitalization of CNY 49.95 billion as of 23 October 2025. Its share price had reached a 52‑week high of CNY 127.57 on 23 October, after a steep decline from a 52‑week low of CNY 23.24 on 8 April. The price‑earnings ratio stood at 188.48, reflecting the high valuation multiples common in high‑growth technology segments.
The company specializes in the design, development, production, and marketing of customized integrated circuits and semiconductor components. Its product portfolio includes digital and analog integrated circuits and specialized components for various applications, positioning it well to supply memory and logic solutions for AI hardware.
Recent Trading Activity
- 24 October: Shannon Semiconductor closed at a 20 % gain, triggering a 20‑centimeter limit‑up. Net buying by large‑institutional participants reached CNY 6.35 billion, accounting for 8.78 % of the total trading volume that day.
- 25 October: The stock surged an additional 220 % during the session, lifting the company’s market value near CNY 60 billion. The rally was part of a broader “storage‑chip” breakout that saw several peers such as Jiangbo Long, Bawei Storage, and Jiangsu Junchen also achieve significant gains or limit‑ups.
Outlook
The confluence of rising memory prices, increased AI server deployment, and capital inflows suggests continued upward pressure on Shannon Semiconductor’s share price in the near term. The company’s strong position within the storage‑chip supply chain and its diversified product offering provide a solid foundation for capitalizing on the ongoing AI‑driven demand surge. However, the high valuation multiple warrants careful monitoring of earnings performance and market sentiment as the sector evolves.
