On May 22, SMIC (00981.HK) rose 3.57% at open, trading at HK$76.85 per share with turnover of approximately HK$97.14 million, extending gains from its strong rebound earlier in the week.

The continued upward momentum follows the company's announcement that it holds a more optimistic view on full-year operations compared to last quarter. Management cited strong AI-related demand for companion chips — particularly power management ICs where capacity is sold out — along with order backflow from consumer and IoT clients seeking mainland fab capacity due to AI-driven overseas consolidation. New applications in ToF sensors, EVs, and robotics, as well as domestic supply chain localization and pricing adjustments, further underpin the positive outlook. Q2 revenue guidance of 14-16% sequential growth reflects rising utilization rates and ASP increases.

On the brokerage side, Citi upgraded SMIC to Buy with a target price of HK$90, while JPMorgan raised its rating to Neutral with a target of HK$67. The broader semiconductor sector is trading higher, with Montage Tech up 4.57%, GigaDevice up 4.06%, and Hua Hong Semi up 3.67%.

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