SMIC's stock price surged 5.02% during intraday trading on Tuesday, as the semiconductor sector continued its upward momentum.

The rally follows TSMC's report of its fifth consecutive quarter of record earnings, which further validated the long-term growth thesis for artificial intelligence. TSMC also raised its full-year revenue growth forecast and plans to significantly increase capital expenditure to expand advanced process and packaging capacity.

Additionally, the global semiconductor industry is experiencing its second round of price hikes this year, with wafer foundry repricing expectations and sustained AI computing demand providing mid-term support. Analysts note that SMIC's average selling price remains far below TSMC's, suggesting significant upside potential as the company ramps up advanced capacity and improves its high-end order mix.