Shares of Taiwanese connector maker Lotes are rebounding after a sharp sell-off, good news for investors who bought the dip and a sign the market still likes the company's outlook.

• The stock jumped as much as 7% after analysts set price targets above NT$2,000, well above where it now trades.
• It had crashed to the daily limit-down on the day of its August 13 earnings call, so this is a bounce off a deep drop.
• Its new quick-connector product started mass production in July and could grow to 2–3% of sales in the second half as factory capacity expands.
• Customers are coping with the memory shortage by downgrading specs, some going back to older DDR4 chips or cutting memory size.
• Short lead times of four to six weeks let customers order as needed, which should help production recover next year.

Outlook: The rebound has room to run if capacity expansion stays on track, though management still won't put a number on next year's contribution from the new product.