Semiconductor Manufacturing International Corp. (SMIC) shares surged 5.76% on Wednesday, propelled by analysts' projections of strong revenue growth for the chipmaker in 2024.
According to a research note from Bocom International analysts Dawei Wang and Carrie Tong, SMIC's 2024 revenue could rise 26% driven by robust demand for its 12-inch wafers. The analysts cited the recovery in chip demand for consumer electronics as a key factor supporting SMIC's business in the second half of the year.
While acknowledging relative weakness in the auto and manufacturing sectors, the analysts expect SMIC to "enter the harvest season" after significant investments. They estimate SMIC's gross margins to improve from 16.8% in 2024 to 22.3% by 2026, as the company reaps the benefits of its capacity expansion efforts.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.