Chinese chip stocks strengthen, AI optimism continues to boost the sector

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Investing.com - Monday, Chinese chip stocks generally rose, following the rebound trend of similar stocks worldwide, as investors’ optimistic expectations for AI-driven demand continued to support the sector’s performance.

China’s largest chip manufacturer, Semiconductor Manufacturing International Corporation (HK:0981), surged 5.6% in the Hong Kong market, with Huahong Semiconductor Limited (HK:1347) rising in tandem.

In the A-share market, Hygon Information Technology Co., Ltd. (SS:688041) jumped 6.4%, while North Huachuang Technology Group Co., Ltd. (SZ:002371) increased by 7.2%.

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The strong performance of U.S. chip stocks last Friday boosted the Chinese market’s rally sentiment. Driven by a significant rise in Intel Corporation (NASDAQ:INTC), the Philadelphia Semiconductor Index hit a record high last Friday.

Against the backdrop of continued market optimism about China’s AI capabilities, Chinese chip stocks have recently experienced significant gains. This optimistic sentiment is especially fueled by AI startup DeepSeek releasing a new model two weeks ago.

According to weekend reports, DeepSeek is seeking to raise up to 50 billion yuan (approximately $7.35 billion) in its first round of financing, which could set a record for the largest single-round funding ever for a Chinese AI company.

Earlier reports indicated that Chinese tech giants Tencent Holdings Limited (HK:0700) and Alibaba (HK:9988) are both interested in participating in DeepSeek’s funding.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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