Key Takeaways:
- YMTC's A-share IPO filing sparks a broad rally in Chinese semiconductor stocks.
- SMIC and Hua Hong Semiconductor both surged more than 8% on the news.
- CLSA raises its price target on GigaDevice, which jumped over 11% to HKD 671.
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China Chip Stocks Soar up to 12% as YMTC IPO Filing Lifts Sector
Chinese semiconductor stocks rallied sharply after 3D NAND flash memory specialist YMTC launched its A-share IPO process, with sector leaders like SMIC and Hua Hong Semiconductor climbing over 8%.
The rally was further supported by a positive analyst action, as CLSA raised its target price on GigaDevice to HKD 782.3 from HKD 538, reiterating an Outperform rating.
Shares in Semiconductor Manufacturing International Corp. (SMIC, 00981.HK) last traded up 8.03% at HKD 74, while Hua Hong Semiconductor (01347.HK) gained 8.66% to HKD 126.7. GigaDevice Semiconductor (03986.HK) was a top performer, surging 11.46% to close at HKD 671 on significant turnover.
The market enthusiasm suggests investors see YMTC's listing as a positive catalyst for the entire domestic chip ecosystem, potentially unlocking value and focusing attention on China's push for semiconductor self-sufficiency.
The IPO process for YMTC was initiated with CITIC Securities and China Securities publishing listing tutoring filing reports, according to the China Securities Regulatory Commission's website. The move sent ripples across the market, igniting strong buying interest in related chipmakers. SMIC saw turnover of HKD 8.24 billion, while Hua Hong's turnover reached HKD 3.07 billion.
In its report, CLSA noted that GigaDevice's niche DRAM business is positioned to benefit from the expansion of supplier capacity. The brokerage also anticipates that the company's customized memory products will start making meaningful revenue contributions from 2026, prompting an earnings forecast upgrade.
This article is for informational purposes only and does not constitute investment advice.
