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

Published on 10/16/2026 at 09:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

SMIC reported USD 3,006 million revenue in the second quarter. SMIC stock enters the next quarter with 26.00 to 28.00 percent gross-margin guidance.

Analyst view and operating figures

Goldman Sachs raised its SMIC target to HKD 135.00 on October 16, 2026.
SMIC generated USD 3,006 million in second-quarter 2026 revenue, up 20.00 percent sequentially.
First-half 2026 revenue reached USD 5,511 million, up 23.70 percent year over year.

SMIC, KYG8020E1199, Illustration mit AI erstellt.

SMIC (ISIN KYG8020E1199) has a higher Goldman Sachs target for its stock, lifted from HKD 134.00 to HKD 135.00 in a report dated October 16, 2026, according to GMT Eight. The update follows second-quarter revenue of USD 3,006 million, up 20.00 percent sequentially, as reported in the earnings-call transcript published by Yahoo Finance.

What supports the higher target?

The operating figures give Goldman Sachs a stronger base for its revised view. SMIC reported a second-quarter gross margin of 25.30 percent, profit attributable to the company of USD 479 million and capacity utilization of 93.70 percent. Wafer shipments rose 14.40 percent sequentially, while the blended average selling price increased 5.70 percent, according to the same transcript.

For the first half of 2026, revenue reached USD 5,511 million, up 23.70 percent year over year. Gross margin stood at 22.90 percent, 1.50 percentage points higher than a year earlier, while profit attributable to the company reached USD 677 million. The figures show why the target debate is centered on utilization, pricing and capacity expansion rather than revenue alone.

Three target changes shaped the timeline

On August 13, 2026, SMIC's second-quarter filing showed USD 3,005.6 million in revenue and a 25.30 percent gross margin, according to Second Order. On September 24, 2026, Goldman Sachs maintained its Buy rating and a HKD 153.00 target, as reported by Longbridge. On October 16, 2026, the bank raised its target from HKD 134.00 to HKD 135.00.

What does the margin guide imply?

SMIC guided third-quarter 2026 revenue to increase 2.00 to 4.00 percent sequentially and gross margin to reach 26.00 to 28.00 percent. Management also expects utilization to remain high as newly added capacity moves through qualification, making execution the key bridge between the second-quarter print and the revised analyst view.

Capacity remains the central test

SMIC's second-quarter numbers combine stronger shipments, higher pricing and 93.70 percent utilization. The next test is whether added capacity can qualify while the company protects the 26.00 to 28.00 percent gross-margin guide for the third quarter.