SMIC's stock price soared 5.79% during the trading session, driven by a positive research report from Guohai Securities.

Guohai Securities initiated coverage on SMIC with a "Buy" rating, expressing optimism for the company's full-year operations. The report highlighted SMIC's first-quarter 2026 performance, with revenue reaching $2.505 billion and a gross margin of 20.1%, and provided a positive outlook for the second quarter with expected sequential revenue growth of 14%-16%. Additionally, the approval of SMIC's proposal to acquire the minority equity stake in SMIC Northern is expected to further integrate company resources and promote long-term development.

Earlier in the day, the Pentagon added SMIC to its list of "Chinese military companies," which could potentially lead to restrictions on U.S. military contracts and research funding. However, the market appeared to focus on the positive fundamental analysis from Guohai Securities.