Huawei unveiled Mate 90: what it means for SMIC stock

Published on 10/08/2026 at 11:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

SMIC revenue reached USD 3.01 billion in the second quarter, up 36.10 percent year over year. The 26.00 to 28.00 percent guide frames SMIC stock.

SMIC, KYG8020E1199, Illustration mit AI erstellt.

SMIC (KYG8020E1199) reported USD 3.01 billion in revenue for the second quarter of 2026, up 36.10 percent year over year, according to The Kapital on October 8, 2026. The report links SMIC to Huawei's Mate 90 launch, with the foundry widely believed to produce chips used in Huawei's smartphones and artificial-intelligence processors.

Mate 90 raises foundry relevance

Huawei unveiled the Mate 90 series on October 1, 2026, using its Kirin 9050 Pro chip and the LogicFolding architecture. The Sun Malaysia, carrying a Reuters report, said SMIC was widely believed to produce the Kirin chips used in Huawei's Mate range and Ascend artificial-intelligence processors.

The connection matters because the Mate 90 expands the list of devices that may require constrained domestic chip capacity. The same report said the Kirin 9050 Pro requires more wafers, adding a capacity variable to the smartphone opportunity.

Margins are the key operating figure

SMIC's second-quarter gross margin reached 25.30 percent, while profit attributable to shareholders rose to USD 479.20 million from USD 132.50 million in the second quarter of 2025, according to The Kapital. The comparison shows why the third-quarter guide is more important than revenue growth alone.

Management expects third-quarter 2026 revenue to rise 2.00 percent to 4.00 percent sequentially and gross margin to reach 26.00 percent to 28.00 percent. Higher utilization and wafer pricing can support fixed-cost absorption, but new capacity also raises capital requirements in a cyclical industry.

What the Mate 90 signal means

The market value of the company was HKD 574.7 billion as of October 8, 2026. The HKEX listing was last at HKD 56.80 at 4:08 p.m. HKT on the same date, against a 52-week range of HKD 38.65 to HKD 93.50, placing the price 39.25 percent below the high.

That valuation leaves SMIC tied to two measurable tests: whether the 26.00 percent to 28.00 percent margin guide becomes actual performance and whether demand from domestic device and artificial-intelligence customers can absorb added wafer capacity.

SMIC stock stays below its yearly high

SMIC's HKEX price was last at HKD 56.80 on October 8, 2026 at 4:08 p.m. HKT, while the 52-week high stood at HKD 93.50. The combination of higher recent revenue and a 39.25 percent gap to the yearly high leaves execution and margin delivery as the central market measures.