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Investing.com - HSBC upgraded Semiconductor Manufacturing International Corp. (HK:981) (NYSE:SMI) from Reduce to Buy and raised its price target to HK$64.00 from HK$35.00.
The upgrade reflects HSBC’s view that SMIC is "emerging as a winner in the semiconductor space" amid ongoing U.S.-China tensions that have accelerated domestic sourcing trends in China.
SMIC, as China’s leading foundry, is positioning itself as a frontrunner for AI-related demand in the Chinese market through its expansion into advanced semiconductor nodes.
HSBC expects SMIC to outperform competitors despite facing "near-term ASP related headwinds" stemming from what it describes as "a company specific equipment yield issue."
The significant price target increase of 82.9% signals HSBC’s confidence in SMIC’s long-term growth potential as China continues to prioritize semiconductor self-sufficiency.
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