Morgan Stanley: SMIC benefits from the construction of artificial intelligence computing power in mainland China, maintains "Overweight" rating

AASTOCKS
2026.02.12 02:17

Morgan Stanley published a research report stating that SMIC (00981.HK) is structurally in a favorable position to benefit from the construction of artificial intelligence computing capabilities in mainland China, which will help offset the cyclical fluctuations in consumer demand. The firm maintains an "Overweight" rating for the company and continues to set a target price of 80 yuan.

Morgan Stanley indicated that SMIC's revenue for the first quarter of this year is expected to remain flat quarter-on-quarter, with a gross margin of 18% to 20%, slightly lower than predicted, reflecting a cautious attitude from some consumer-facing clients during the memory price upcycle and concerns about visibility in end demand.

The firm believes that SMIC is a key driver of the local artificial intelligence GPU supply chain in China. Additionally, as wafer utilization remains high and average prices trend upward, the company is expected to absorb some of the rising depreciation costs due to ongoing capacity expansion

Source: AASTOCKS The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
© 2026 Longbridge｜Disclaimer