Fueled by robust revenue growth and a notable recovery in gross margins, Goldman Sachs has revised upwards its target price for SMIC, along with boosting its earnings per share projections for the 2028 - 2029 period. Specifically, the investment bank has hiked the target price for SMIC's H-shares from HK$63.7 to HK$73.1. Meanwhile, it has made a minor adjustment to the target price for the A-shares, nudging it up from 160 yuan to 160.1 yuan.

In tandem with these price adjustments, Goldman Sachs has also fine-tuned its revenue forecasts for 2028 and 2029, lifting them by 0.4% and 2%, respectively. Analysts at the firm are of the view that the escalating demand from domestic fabless customers will serve as a key driver for SMIC's sustained long-term growth. Additionally, they anticipate a near-term rebound in profit margins.

Backed by the burgeoning demand emanating from Chinese IC design firms and the rapid strides being made in the field of artificial intelligence, SMIC is well-positioned to experience robust growth over the long haul. Goldman Sachs, thus, remains highly optimistic about the company's future prospects.