The initiation of YMTC's initial public offering (IPO) process has resulted in a notable uptick in the semiconductor sector, driving significant gains for key players in the market. The announcement comes as YMTC, known for its 3D NAND flash memory chips, outlined its plans through listing tutoring reports released by CITIC Securities and China Securities, as documented by the China Securities Regulatory Commission.
Following the IPO news, SMIC's stock surged by over 8%, reaching HKD74, with a turnover of 113 million shares valued at approximately HKD8.24 billion. This rise in SMIC's shares reflects broader optimism in the semiconductor market, fueled by increasing demand from advancements in artificial intelligence and other technologies. Short selling data shows a significant interest, with short selling totaling $1.19 billion and a ratio of 12.088%.
HUA HONG SEMI also saw a remarkable increase of 14.32%, trading at HKD126.7 with a turnover of HKD3.071 billion. The company reported an impressive 458.1% year-on-year growth in its net profit for the first quarter, further boosting investor confidence. With $749.06 million in short selling and a ratio of 20.702%, HUA HONG SEMI's performance highlights the escalating competition in the semiconductor industry.
GIGADEVICE experienced a significant jump as well, with shares climbing 16.11% to HKD671. Analysts from CLSA noted that GIGADEVICE's niche in DRAM will benefit from increased supplier capacity and anticipated revenue growth from customized memory products starting in 2026. The trading volume for GIGADEVICE reached HKD1.554 billion, indicating strong market interest in its growth potential.
In light of these developments, CLSA has revised its price target for SMIC to HKD94.1, citing stable demand from AI applications as a key factor in order momentum. The firm also raised its earnings forecasts for SMIC, increasing its H-share price target from HKD538 to HKD782.3 while maintaining an Outperform rating.
The steady performance of these semiconductor stocks clearly indicates market confidence, driven by technological advancements and the positive implications of YMTC's IPO. As demand for innovative chip solutions continues to rise, particularly from AI and other sectors, the semiconductor industry appears poised for a promising trajectory in the near future.
