SMIC's stock surged 5.02% during intraday trading on Monday, reflecting strong momentum in the semiconductor sector.

The rally follows Taiwan Semiconductor Manufacturing Company's (TSMC) announcement of record-breaking profits for the fifth consecutive quarter, which has boosted sentiment across the semiconductor industry. TSMC reported a 77% year-on-year increase in net profit and raised its revenue growth forecast for 2026, while expressing high optimism about the long-term growth trajectory of the AI industry.

Additionally, the semiconductor sector is experiencing a technical rebound after four consecutive days of correction, with profit-taking pressure having been released. Mid-term industry drivers, including expectations for wafer foundry price increases and sustained AI computing power demand, continue to support the sector's fundamentals. Market analysts note that the current adjustment phase in tech stocks may be nearing its conclusion, with the AI industry trend remaining a primary market driver.