Semiconductor Manufacturing International Corporation (SMIC), a leading chip manufacturer in China, saw its stock soar 7.12% during intraday trading, outpacing the broader semiconductor sector's gains. The surge comes amid a continued rally in chip stocks, driven by optimism surrounding advancements in domestic AI chip technology and the growing market for Chinese semiconductors.

The upward momentum in the chip sector was evident across multiple companies, with SMIC leading the pack. Other notable gainers included Solomon Systech, which rose 6%, and Hua Hong Semiconductor, which advanced 3%. This widespread rally underscores investor confidence in the Chinese semiconductor industry's growth prospects.

A key factor fueling the surge is the recent release of DeepSeek-V3.1, which utilizes UE8M0 FP8 Scale parameter precision. This technology is specifically designed for next-generation domestic chips, signaling a potential boost for Chinese chip manufacturers like SMIC. Industry analysts at Oriental Securities noted that several domestic AI chips are beginning to support FP8, including products from companies such as Muxi, VeriSilicon, Cambricon, Moore Threads, and Hygon.

Experts believe that as domestic AI chip design technology and manufacturing processes improve, coupled with the ongoing development of Chinese large language models, the market share of domestic computing power is expected to rise. This trend bodes well for companies like SMIC, which are at the forefront of China's push for semiconductor self-sufficiency. The sustained rally in SMIC's stock price reflects growing investor confidence in the company's ability to capitalize on these industry tailwinds and maintain its growth trajectory in the competitive global semiconductor market.