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.
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.