1. What Happened to MDIvice?

On September 24, 2025, the Korea Exchange issued an investment warning for MDIvice due to concerns about market overheating and unusual trading patterns following a recent surge in its stock price.

2. Why Did MDIvice’s Stock Price Soar?

Driven by explosive growth in the enterprise SSD segment (93.24% of total sales), MDIvice recorded a 361% year-on-year increase in revenue in the first half of 2025, reaching 45.4 billion won. Operating profit and net income also showed remarkable growth of 743% and 387%, respectively. This growth is attributed to the expansion of the data center market and increasing data demand from AI and big data industries. Furthermore, efforts to secure future growth engines, such as entering the AVP business and developing CXL network semiconductors, have also positively impacted the stock price.

3. So, Should You Invest Now?

The investment warning may lead to a decline in investor sentiment and a drop in stock price. Caution is advised in the short term. However, MDIvice’s robust growth trajectory remains attractive. The key is to determine whether the stock price is overheated compared to its fundamentals and whether sustainable growth is possible in the future.

  • Positive Factors: Solid performance, securing future growth engines, technological competitiveness
  • Risk Factors: Overheated stock price, financial vulnerabilities (high debt ratio, operating cash flow deficit), customer concentration risk, regulatory risk

4. Action Plan for Investors

Current Investors: Prepare for the possibility of a short-term stock price decline. Decide whether to hold or sell based on observing fundamental improvements such as new business performance and financial soundness recovery.

New Investors: After a potential short-term drop in price, make investment decisions based on a thorough review of MDIvice’s performance in the second half of 2025 and 2026, AVP business performance, financial health indicators, and new market development efforts. A cautious approach is necessary until a stable upward trend in stock price based on fundamentals is confirmed.

5. Key Points to Watch

  • Whether an investment warning is officially issued and its impact
  • Q3 2025 earnings announcement
  • Performance of AVP business and HBM market entry
  • Changes in financial health indicators
  • Efforts to diversify customer base
  • Exchange rate and macroeconomic volatility