Semiconductor Manufacturing International’s Stock Price Soars to 18.14 HKD, Marking a Robust 6.08% Uptick

Semiconductor Manufacturing International (981)

18.14 HKD +1.04 (+6.08%) Volume: 129.59M

Semiconductor Manufacturing International’s stock price surged to 18.14 HKD, marking a notable trading session gain of +6.08%. Despite a year-to-date decrease of -8.66%, the high trading volume of 129.59M indicates robust investor interest in the 981 stock.

Latest developments on Semiconductor Manufacturing International

Today, Semiconductor Manufacturing International Corp (SMIC) stock price saw movements as Chinese AI chip firms are reportedly downgrading designs to secure production with TSMC, a key player in the global chip industry. This comes as China continues to make strides in reducing its reliance on US technology in chip production, part of a broader goal to cut out the US in the ongoing Chip Wars. Meanwhile, Asian chip makers are rallying to new heights, with NVIDIA recently touching a 3 trillion valuation, indicating a shifting landscape in the semiconductor market.

Semiconductor Manufacturing International on Smartkarma

Analysts on Smartkarma have differing views on Semiconductor Manufacturing International Corp (SMIC). Patrick Liao‘s report highlights the exciting 1Q24 results for SMIC, with revenue and GM surpassing guidance. Despite the EUV machine embargo affecting China, the 2Q24 outlook appears optimistic, with revenue expected to increase by 5% to 7% QoQ and GM by 9% to 11%. Liao points out that the primary bottleneck for SMIC is the embargo of EUV machines from the Netherlands.

In contrast, William Keating’s analysis paints a more bearish picture for SMIC. He notes fierce competition, GM pressure, and a sluggish rebound in the Year of The Dragon. Both SMIC and Hua Hong reported Q423 earnings in line with expectations and guided Q124 to be flat to slightly down. Keating highlights the inherent weakness in China’s Semi Foundry segment compared to peers, with China’s two leading semi foundries having around 80% domestic dependence, posing a significant headwind for the companies.

A look at Semiconductor Manufacturing International Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

According to Smartkarma Smart Scores, Semiconductor Manufacturing International Corp (SMIC) has received strong ratings in several key areas. With a top score in Value and Momentum, the company is positioned well for long-term success. This indicates that SMIC is considered to be undervalued and has positive price momentum, which bodes well for investors looking for potential growth opportunities.

Although SMIC scored lower in Dividend and Resilience, its high score in Growth suggests that the company has strong potential for future expansion and development. Overall, Semiconductor Manufacturing International Corp is viewed favorably by Smartkarma Smart Scores, indicating a positive long-term outlook for the semiconductor foundry company.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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