Shares of Chinese chip foundry Hua Hong Grace Semiconductor jumped after a strong earnings report, bucking a global tech rout triggered by the Democratic sweep at the U.S. midterm elections.

Hua Hong shares climbed 6.9% and 3.9% in Shanghai and Hong Kong, respectively, on Friday, a sharp contrast with the punishing selloff of technology stocks across the world. The Democrats' congressional victory has raised concerns about tighter artificial-intelligence regulation and slower data-center development.

Hua Hong posted a more than doubling in third-quarter net profit to $123.4 million. Revenue jumped 20% to a record $987.1 million, topping its guidance of $770 million to $780 million.

Shipment growth and higher selling prices drove the better-than-expected results, the company said.

Hua Hong, China's second-largest chip foundry, also guided for revenue to rise to between $1.08 billion and $1.09 billion in the fourth quarter, with gross margin expected in the 25%-26% range.

Bernstein analysts noted that although Hua Hong makes primarily mature nodes and has limited direct exposure to Al accelerators, management estimated that more than 50% of its wafer output is now ultimately tied to AI-related applications.

According to management, roughly half of customer demand remains unmet, suggesting continuing tight supply, Bernstein wrote in a note.

Beyond Thursday's results, analysts have said that China could be a portfolio diversifier amid the global AI rout, as its chip makers benefit from the country's tech self-sufficiency drive despite a slowdown in U.S.-led AI investment.