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FADU stock rebounds after company’s statement on market concerns

Collected: 2023.11.13

Distributed: 2023.11.14

Source: Go Direct

[A screen capture of FADU vimeo]

FADU Technology Inc., a South Korean fabless semiconductor unicorn, saw its shares rebound on Monday morning after two straight days of decline.

Shares of FADU were trading 4.8 percent higher at 19,880 won ($15) as of 10:11 a.m. on Monday.

The surge came as the company released an official statement amid the ongoing market concerns over weak earnings.

이미지 확대

Letter to Shareholders [A screen capture of FADU’s website]

“The unexpected downturn in the NAND and SSD markets, coupled with the internal situation of datacenters, most SSD companies were hit hard and FADU also couldn’t avoid it,” the company said. “The company’s recent performance has been derived from these challenging market conditions and concerns that existing customers have replaced FADU products with other products are completely untrue.”

“We clearly state that orders from existing customers have already resumed in the fourth quarter of 2023, albeit at a lower amount,” the company said.

FADU disclosed on November 8 that its third-quarter sales came to 320.8 million won. Its stock hit the lowest price on the following day and plunged 21.93 percent on the second day.

Since its inception in 2015, FADU has been specializing in chip design for data centers. Its flagship products include high-performance, cost-efficient solid-state disk (SSD) controllers.

During its pre-initial public offering (IPO) in February, FADU was named the country’s first unicorn, a non-listed startup with a valuation of 1 trillion won, in the chip design sector.

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