SMIC’s Nvidia-Beating 120% Stock Rally Faces Chip War Threats
- SMIC has more than doubled in two months as market eyes Trump
- Competition looms and valuation not attractive: Morgan Stanley
The Semiconductor Manufacturing International Corp. headquarters in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Semiconductor Manufacturing International Corp.’s stock has more than doubled over the past two months on an expected boost from China’s self-reliance push, even amid risks tied to competition and geopolitical tensions.
Shanghai-listed shares of China’s largest outsourced chipmaker are up 120% from a September low, trouncing global sector names including Nvidia Corp. and Taiwan Semiconductor Manufacturing Co. The mainland stock has outperformed SMIC’s Hong Kong shares by almost 50 percentage points, underscoring stronger demand from onshore Chinese investors.