BUZZ-HK-listed chip manufacturer SMIC jumps; Morningstar bullish 'over long term'

Shares of China's top chip manufacturer Semiconductor Manufacturing International Corp (SMIC) 0981.HK jump 8.4% to HK$41.20

Stock top pct gainer in both Hang Seng Index .HSI and Hang Seng Tech Index .HSTECH, which are down 1.5% and 2% respectively following U.S. President Donald Trump imposing sweeping tariffs

"For SMIC and Hua Hong 688347.SS, it could mean less urgency to produce cutting-edge AI chips," Morningstar said in a note last week on DeepSeek's impact on Asian tech stocks, adding SMIC has been strong YTD on government subsidies on domestic appliances

"While there will be elevated short-term volatility as demand may fluctuate, with efficiency gains and wider adoption, we're bullish over the long-term as wider adoption should win out and lead to sustainable AI investments" - Morningstar

Hang Seng Commerce & Industry Index .HSNC falls 1.3%

SMIC stock soared 60.1% last year