SMIC's stock price soared 5.08% intraday on Monday, reflecting strong investor sentiment towards the semiconductor foundry.

The surge is attributed to multiple positive factors within the semiconductor industry. Analysts highlight a looming severe supply shortage in the global memory chip sector, with 2027 forecasted as the peak year for supply tightness, driving long-term demand optimism. For SMIC specifically, the company reported a year-on-year increase in first-quarter sales revenue and net profit, with second-quarter revenue guidance pointing to a significant sequential increase.

Furthermore, expectations for wafer foundry price hikes continue to intensify, with reports indicating major players planning substantial price increases for advanced nodes. This pricing power benefits foundries like SMIC. Additionally, market anticipation is building for the upcoming World Artificial Intelligence Conference, which is expected to boost demand for computing infrastructure in the second half of the year, positioning SMIC as a core domestic foundry and direct beneficiary of AI chip demand.