Semiconductor Manufacturing International Corp (SMIC) shares surged 6.18% in intraday trading on Wednesday, outperforming Hong Kong's broader market. The chipmaker's stock climbed to HK$48.2, set for its biggest one-day gain since early February, driven by a strong first-quarter outlook and robust financial results.

SMIC reported a 31.5% year-over-year increase in fourth-quarter revenue, with gross margin improving to 22.6% from 16.4% a year ago. The company's positive guidance, forecasting revenue growth of 6-8% quarter-over-quarter and a gross margin range of 19-21% for the first quarter, fueled investor optimism.

The stock's rally is part of a broader AI-fueled stock craze sweeping Chinese technology firms. Global investors are reassessing China's competitiveness in the tech and AI sectors, following the success of DeepSeek and other breakthroughs. Wall Street strategists from major banks, including Morgan Stanley, JPMorgan, and UBS, expect the momentum in Chinese AI stocks to continue, driven by positive fund flows and a growing recognition of the country's technological prowess.