GigaDevice Semiconductor Inc shares rose in its Hong Kong debut, underscoring growing investor interest in Chinese stocks related to artificial intelligence (AI).

The company, which is the city’s second semiconductor-company listing in as many days, rose as much as 54 percent to HK$248.80 as it started trading in Hong Kong Tuesday. It raised HK$4.68 billion ($600 million) in an offering where shares were priced at HK$162 apiece, with the retail offer 542 times subscribed.

GigaDevice’s Hong Kong debut comes amid memory-chip price gains driven by supply shortages, as global producers rush to meet surging needs for AI. It joins a flurry of Chinese tech listings, fueled by Beijing’s push to foster local competitors to the likes of Nvidia Corp and Micron Technology Inc.

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Beijing-based GigaDevice mainly provides so-called niche memory chips. It was the world’s second-largest supplier of NOR Flash memory for cars, industrial automation and networking last year, according to a listing document filed with the Hong Kong Stock Exchange, citing US consultancy Frost & Sullivan. It also sells micro control units, which can be found in applications from consumer electronics to energy storage tools.

“Many of its products are leading in the nation and even globally, and its client base is of high quality and secure,” wrote SDICS International Securities analyst Alex Wang in a note. “Its product mix will make it a beneficiary of AI devices and its acquisitions are starting to bear fruit,” he said.

Investor reception has been strong for China’s latest tech listings. Shanghai Biren Technology Co more than doubled from its debut in Hong Kong two weeks ago through Monday. Moore Threads Technology Co and MetaX Integrated Circuits Shanghai Co surged about sixfold following their Shanghai offerings last month.  

GigaDevice’s Hong Kong listing price represented roughly a 45 percent discount from its A shares, which closed at 261.83 yuan Monday. That compares with the 18 percent discount OmniVision Integrated Circuits Group Inc’s H shares hit versus its onshore peer following the Monday debut, and around 35 percent discount in Hua Hong Semiconductor Ltd.

GigaDevice has close ties with ChangXin Memory Technologies, which has also begun an onshore listing process eying a raise of 29.5 billion yuan ($4.23 billion). GigaDevice’s founder and chairman Zhu Yiming also serves as the chairman of ChangXin, and the company relies on ChangXin to manufacture some of its chips.

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The company reported profit of 588 million yuan in the first half of 2025, an increase of 14 percent from the previous period, according to the prospectus. It attributed the improvement to recovering price trends in memory chips, noting that its financial performance is susceptible to the cyclical price moves in the semiconductor industry.