UBS Upgrades SMIC to Buy, Raises TP to HKD96.2
AASTOCKS News·- UBS upgraded SMIC from Neutral to Buy and raised its target price from HKD 76 to HKD 96.2. - The upgrade is driven by SMIC benefiting significantly from China's AI semiconductor localization trend and robust advanced logic demand. - UBS projects SMIC's advanced logic revenue to grow at a CAGR of 55 % from 2025 to 2028, reaching USD 6 billion.Memory prices to peak this year in upcycle turning point, research suggests
SCMP·- Global memory-chip stocks are retreating as cooling price growth and rising inventories signal that the sector's upcycle is nearing its late stage. - Bernstein Research reported that conventional DRAM contract price increases are projected to slow to about 17 per cent in the third quarter compared to 65 per cent in the previous period. - Despite aggressive supply expansions by Chinese producers like CXMT and YMTC, major financial institutions project that memory market shortages will persist until at least 2028 due to robust AI demand.‘Nasty’ chip stock rout plunges Nasdaq into correction territory
cityam·- A global semiconductor stock rout plunged the Nasdaq into correction territory after falling nearly 2 % at the US market open on Tuesday 29 July 2026. - The sell-off was driven by investor skepticism regarding the scale of AI capital expenditures, rising borrowing costs, and the blockbuster debut of Chinese chipmaker CXMT. - Major chipmakers suffered severe losses, with South Korea’s Kospi index shedding over 10 % in a single session and forcing trading halts.CN Mutual Funds Cut Consumer Stocks Sharply in 2Q, Rotate Into AI-Related Shares
AASTOCKS News·- Mainland China's public mutual funds notably adjusted their portfolios in the second quarter, favoring AI-related shares over consumer stocks. - Significant shifts included E Fund Blue Chip Selected Mixed Fund reducing its holdings in Chinese Baijiu stocks from 30% to 13%, while increasing investment in AI stocks like SMIC and DONGSHAN PRECISION. - IGW Core Competence Mixed Securities Fund also replaced prior holdings with AI concept stocks such as ZHONGJI INNOLIGHT and PIOTECH in its top 10 holdings.