Goldman Sachs: Upgrades SMIC (00981.HK) target price to 73.1 Hong Kong dollars. Expansion of AI and fab-less semiconductor companies driving long-term upward trend.

Zhixingtong Financial APP learned that Goldman Sachs released a research report stating that the demand for semiconductor companies in China that design their own chips and outsource production to professional foundries (i.e. fabless semiconductor companies) is increasing. The demand for the Chinese market is favorable for the wafer foundry company, Semiconductor Manufacturing International Corporation (00981.HK), and benefiting from the demand can drive the recovery of utilization rate and gross profit. In addition, with the company's continuous and stable capacity expansion and new AI opportunities, Goldman Sachs is optimistic about Semiconductor Manufacturing International Corporation. Goldman Sachs gives Semiconductor Manufacturing International Corporation a "buy" rating, raising the target price from 63.7 Hong Kong dollars to 73.1 Hong Kong dollars, predicting a 40 times price-earnings ratio for the fiscal year 2028 (previously 36 times).