Shares of Semiconductor Manufacturing International Corp (SMIC), China's largest chipmaker, soared by 6.19% on Thursday, propelled by the company's robust third-quarter financial performance and an optimistic outlook for the remainder of the year.
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 upbeat 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. This positive guidance, coupled with analysts' bullish projections for the company's 2024 revenue growth, fueled investor confidence and drove the stock's surge.
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.