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GigaDevice SemiconductorSHSE:603986 +2.02%83 Gross Margin % is 57.08% as of Mar. 2026, which is 47% above its 10-year median of 38.71. GuruFocus rates SHSE:603986 with a GF Score™ of 83/100 and a GF Value™ of ¥254.18 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,010 Semiconductors companies, GigaDevice Semiconductor ranks better than 78.42% on this metric.
SHSE:603986's Gross Margin % is ranked better than 78.42% of 1010
companies
in the Semiconductors industry
Industry Median: 29.61
vs SHSE:603986: 46.83
GigaDevice Semiconductor had a gross margin of 57.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for GigaDevice Semiconductor was -1.50% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
GigaDevice Semiconductor had a gross margin of 57.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
GigaDevice Semiconductor Gross Margin % Related Terms
GigaDevice Semiconductor Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SHSE:603986 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, GigaDevice Semiconductor's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
GigaDevice Semiconductor Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, GigaDevice Semiconductor's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GigaDevice Semiconductor's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
GigaDevice Semiconductor (SHSE:603986) has a Gross Margin % of 57.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on GigaDevice Semiconductor and its competitors. This is 47% above median its historical median of 38.71. Over the past decade, GigaDevice Semiconductor's Gross Margin % has ranged from 26.72 to 47.66. According to the industry distribution chart, GigaDevice Semiconductor ranks #218 out of 1010 companies in the Semiconductors industry, placing it in the top 21.6%.
Is GigaDevice Semiconductor's Gross Margin % too high?
GigaDevice Semiconductor's current Gross Margin % of 57.08% is 47% above median its 10-year median of 38.71. Over the past 10 years, this metric has ranged from a low of 26.72 to a high of 47.66. The Semiconductors industry median Gross Margin % is 29.61. GigaDevice Semiconductor's value of 57.08% is 92.8% above this industry median. Based on the distribution chart, GigaDevice Semiconductor ranks #218 out of 1010 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, GigaDevice Semiconductor has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GigaDevice Semiconductor's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, GigaDevice Semiconductor ranks #218 out of 1010 companies for Gross Margin %. This places GigaDevice Semiconductor in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. GigaDevice Semiconductor's value of 57.08% is 92.8% above this benchmark. Historically, GigaDevice Semiconductor's own Gross Margin % has ranged from 26.72 to 47.66 over the past decade. While the company's 10-year median is 38.71 vs. the industry median of 29.61, GigaDevice Semiconductor has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GigaDevice Semiconductor's current Gross Margin % of 57.08% is 92.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on GigaDevice Semiconductor and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GigaDevice Semiconductor's current Gross Margin % is 57.08%, which is 47% above median its own 10-year median of 38.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GigaDevice Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, GigaDevice Semiconductor (SHSE:603986) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥254.18, compared to a current price of ¥378.60 — trading 48.9% above its estimated fair value. The current Gross Margin % is 57.08%, which is 47% above median its 10-year median of 38.71 and 92.8% above the Semiconductors industry median of 29.61. GigaDevice Semiconductor's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For GigaDevice Semiconductor (SHSE:603986), the current Gross Margin % is 57.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is GigaDevice Semiconductor (SHSE:603986) Overvalued in 2026?
Based on GuruFocus' analysis, GigaDevice Semiconductor stock appears to be overvalued.
The current stock price of ¥378.60 is trading 48.9% above its estimated GF Value™ of ¥254.18.
GuruFocus considers GigaDevice Semiconductor to be Significantly Overvalued.
Key valuation signals for SHSE:603986:
Gross Margin %: 57.08% (47% above median its 10-year median of 38.71)
GF Value™: ¥254.18 vs. price of ¥378.60 (48.9% above fair value)
Industry Position: 92.8% above the Semiconductors median (#218 of 1010)
No single metric tells the full story. See the SHSE:603986 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GigaDevice Semiconductor Inc is engaged in the domestic storage and Internet of Things (IoT) chip industry. Its product portfolio comprises of flash memories and microcontrollers. Some of its products are SPI NOR flash, SPI NAND flash, and ARM Cortex-M3, among others. The products are for use in embedded, consumer, and mobile communications applications.
83GF Score
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