Goldman Sachs raises target for SMIC stock to HKD 135

Published on 10/13/2026 at 10:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

SMIC revenue reached USD 3.01 billion in the second quarter. For SMIC stock, third-quarter guidance sets gross margin at 26.00 to 28.00 percent.

Key points in brief

Goldman Sachs raised its SMIC H-share target from HKD 134 to HKD 135 on October 13, 2026, while keeping a Buy rating.
SMIC reported USD 3.01 billion of revenue and a 25.30 percent gross margin for the second quarter of 2026.
Third-quarter guidance calls for revenue growth of 2.00 percent to 4.00 percent sequentially and a 26.00 percent to 28.00 percent gross margin.
SMIC operates a semiconductor foundry business and trades as 981.HK on HKEX.

SMIC, KYG8020E1199, Illustration mit AI erstellt.

SMIC (KYG8020E1199) received a higher Goldman Sachs target of HKD 135 on October 13, 2026, up from HKD 134, while the bank retained its Buy rating. GMT Eight reported that the bank also lifted its 2026 to 2029 profit forecasts by 1.00 percent each. The target change gives SMIC stock a fresh valuation reference as artificial-intelligence demand supports foundry pricing.

Three results shaped the story

On August 13, 2026, SMIC's second-quarter filing showed USD 3.01 billion of revenue, a 25.30 percent gross margin and 93.70 percent utilization. The figures were reported by SOTKN from the HKEX filing dated August 13, 2026.

On August 14, 2026, SMIC's earnings call gave third-quarter guidance for revenue growth of 2.00 percent to 4.00 percent sequentially and a gross margin of 26.00 percent to 28.00 percent. The transcript also recorded second-quarter profit attributable to the company of USD 479.00 million and operating cash flow of USD 2.52 billion, according to Yahoo Finance.

What does the target change mean?

Goldman Sachs linked its October 13, 2026 view to five drivers: artificial-intelligence demand for analog and logic chips, capacity expansion, domestic sourcing demand, higher utilization and a stronger product mix. The bank expects high utilization in the second quarter and sees improved average selling prices supporting margins, according to GMT Eight.

The operating counterweight is execution. SMIC's management said newly added capacity would be qualified progressively, while the second-quarter utilization rate reached 93.70 percent and monthly capacity rose to 1,096,500 eight-inch-equivalent wafers. That makes qualification speed and product mix central to the 26.00 percent to 28.00 percent margin guide.

SMIC's listing and business

Semiconductor Manufacturing International Corporation operates a semiconductor foundry business serving integrated-circuit customers. The company is listed on HKEX as 981.HK under ISIN KYG8020E1199, with the listing and sector details identified by Global Banking and Finance.

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