Ge Long Hui·2025-10-21 04:08Core Viewpoint - Morgan Stanley upgraded the rating of SMIC (0981.HK) from "In Line with Market" to "Overweight" and significantly raised the target price from HKD 40 to HKD 80, citing strong demand for advanced process wafer foundry driven by the rapid adoption of AI applications in China and policy support for domestic AI GPUs [1] Group 1: Company Analysis - The upgrade reflects a positive outlook on SMIC's growth potential in the semiconductor industry, particularly in the context of AI technology [1] - The report highlights that the demand for domestic AI chips is expected to surge, leading to an increase in sales revenue for AI GPUs in China [1] Group 2: Industry Insights - The compound annual growth rate (CAGR) for China's AI GPU sales revenue is projected to be 62% from 2024 to 2027, indicating robust growth in the sector [1] - The rapid proliferation of AI applications in China is anticipated to significantly boost the demand for advanced semiconductor manufacturing capabilities [1]