China chip stocks extend rally on AI optimism; SMIC jumps 9%
Chinese chip stocks continued their rally on Monday, with Semiconductor Manufacturing International Corp (SMIC) shares jumping nearly 9%, driven by optimism over domestic artificial intelligence development. The gains follow last week's enthusiasm after Chinese AI firm DeepSeek unveiled its latest open-source model, boosting expectations for stronger domestic demand for advanced computing and chip infrastructure.
Chinese chip stocks extended their rally on Monday, driven by optimism over domestic artificial intelligence development. Semiconductor Manufacturing International Corp (SMIC) shares jumped nearly 9%. The gains follow Chinese AI firm DeepSeek unveiling its latest open-source model, boosting expectations for stronger domestic demand for advanced computing and chip infrastructure. Shares of mainland and Hong Kong-listed chipmakers advanced across the board, with Hua Hong Semiconductor rising over 7% and NAURA Technology Group surging nearly 10%. The rally underscores growing confidence in China's push for semiconductor self-sufficiency, with firms benefiting from policy support and restrictions on access to U.S. technology. Domestic players such as SMIC and Huawei have been central to this effort, ramping up production and investing in AI chip capabilities.
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