Goldman Sachs raises target for SMIC stock from HKD 134.00 to HKD 135.00

Published on 10/15/2026 at 10:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

SMIC posted USD 3.01 billion revenue in second quarter, up 20.00 percent. For SMIC stock, the third-quarter guide is 26.00 to 28.00 percent margin.

Analyst view and operating figures

Goldman Sachs lifted its SMIC target to HKD 135.00 on October 15, 2026.
Second-quarter revenue reached USD 3.01 billion, up 20.00 percent sequentially.
First-half 2026 revenue rose 23.70 percent year over year to USD 5.51 billion.

SMIC, KYG8020E1199, Illustration mit AI erstellt.

SMIC raised its earnings bar on October 15, 2026, when Goldman Sachs lifted its target for the stock from HKD 134.00 to HKD 135.00 while keeping a Buy rating. GMT Eight reported that the bank expects artificial-intelligence demand, capacity expansion and a stronger product mix to support SMIC's earnings through 2026.

Goldman sees room for growth

The target increase rests on a sharper operating picture rather than a single product launch. Goldman Sachs raised its profit forecasts for 2026 through 2029 by 1.00 percent each, according to GMT Eight.

That view follows a strong second quarter. SMIC generated USD 3.01 billion in revenue, up 20.00 percent sequentially, while gross margin reached 25.30 percent, an increase of 5.20 percentage points. Profit attributable to the company was USD 479.00 million. These figures come from the second-quarter earnings call transcript published by Yahoo Finance.

What does capacity mean?

Capacity is the key test for the bullish thesis. SMIC reported 93.70 percent utilization in the second quarter, while wafer shipments increased 14.40 percent sequentially and blended average selling price rose 5.70 percent, according to Yahoo Finance. Management guided third-quarter revenue 2.00 to 4.00 percent higher sequentially and gross margin to 26.00 to 28.00 percent.

Execution remains the next test

First-half 2026 revenue rose 23.70 percent year over year to USD 5.51 billion, while first-half gross margin was 22.90 percent, up 1.50 percentage points. The combination of rising demand and high utilization gives the Goldman view a measurable operating basis, but it also leaves execution and new-capacity qualification central to the next report.