Shares of Semiconductor Manufacturing International Corp (SMIC), China's largest chipmaker, surged 6.19% on Thursday, propelled by the company's robust third-quarter earnings, upbeat fourth-quarter guidance, and analysts' bullish projections for its 2024 revenue growth.

SMIC reported a 58.3% year-over-year increase in its third-quarter net profit, reaching $148.8 million, as the semiconductor sector showed signs of recovery after a prolonged downturn since late 2022. The chipmaker's revenue for the quarter grew 34% to $2.17 billion, in line with market expectations, while its gross profit margin of 20.5% exceeded analysts' estimates.

Looking ahead, SMIC provided an optimistic forecast, estimating its fourth-quarter gross margin to range between 18% and 20%, with revenue expected to be flat or rise up to 2% from the previous quarter. Analysts at Bocom International expressed confidence in SMIC's prospects, projecting a 26% revenue growth for the company in 2024, driven by robust demand for its 12-inch wafers from the recovering consumer electronics sector.