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M Stanley: SMIC (00981.HK) Benefits from CN AI Compute Build-out; Rating Kept at Overweight
2026-02-12 10:17:32
SMIC (00981.HK) is structurally well-positioned to benefit from the construction of AI compute power in mainland China, which helps offset the cyclical fluctuations in consumer demand, Morgan Stanley issued a research report saying. Therefore, the broker kept rating at Overweight on the Company and a target price of $80.

SMIC guided its 1Q26 revenue to be flat QoQ, with a gross margin of 18-20%, slightly below forecasts, Morgan Stanley added. This reflects a cautious stance among some consumer-facing clients amid the upcycle of memory prices and concerns over visibility of end-demand.
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